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Carlson Auto Dealers Inc. sells a handmade automobile as its only product. Each automobile is identical; however, they can be distinguished by their unique ID number. At the beginning of 2021, Carlson had three cars in inventory, as follows:

Car ID	Cost
203	$	63,000
207		63,000
210		66,000

During 2021, each of the three autos sold for $93,000. Additional purchases (listed in chronological order) and sales for the year were as follows:

Car ID	Cost			Selling Price
211	$	60,000		$	93,000
212		60,000			96,000
213		61,500		not sold
214		63,000			99,000
215		66,000			103,500
216		67,500		not sold
217		69,000			108,000
218		69,300			109,500
219		72,000		not sold

Required:
1. Calculate 2021 ending inventory and cost of goods sold assuming the company uses the specific identification inventory method.

Answer 1

Cost of ending inventory

Car ID	Cost
213	61,500
216	67,500
219	72,000
Total	$201,000

Cost of ending inventory = $201,000

Cost of goods sold

Car ID	Cost
203	63,000
207	63,000
210	66,000
211	60,000
212	60,000
214	63,000
215	66,000
217	69,000
218	69,300
Total	$579,300

Cost of goods sold = $579,300

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