Question

Jimmie's Fishing Hole has the following transactions related to its top-selling Shimano fishing reel for the month of June. Jimmie's Fishing Hole uses a periodic inventory system. 

Required: 1. Calculate ending inventory and cost of goods sold at June 30, using the specific Identification method. The June 7 sale consists of fishing reels from beginning inventory, the June 15 sale consists of three fishing reels from beginning inventory and nine fishing reels from the June 12 purchase, and the June 27 sale consists of one fishing reel from beginning inventory and seven fishing reels from the June 24 purchase. 

Answer 1

Answer

• Requirement 1

Ending Inventory = $ 3980

Cost of Goods Sold = $ 10000

Specific Identification	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	16	$              330.00	$                        5,280.00	15	$             330.00	$                 4,950.00	1	$              330.00	$                330.00
Purchases:
12-Jun	10	$              320.00	$                        3,200.00	9	$             320.00	$                 2,880.00	1	$              320.00	$                320.00
24-Jun	10	$              310.00	$                        3,100.00	7	$             310.00	$                 2,170.00	3	$              310.00	$                930.00
29-Jun	8	$              300.00	$                        2,400.00	0	$             300.00	$                              -	8	$              300.00	$            2,400.00
TOTAL	44		$                      13,980.00	31		$               10,000.00	13		$            3,980.00

Answer 2

Answer

• Requirement 2

Ending Inventory = $ 3950

Cost of Goods Sold = $ 10030

FIFO	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	16	$              330.00	$                        5,280.00	16	$             330.00	$                 5,280.00	0	$              330.00	$                         -
Purchases:
12-Jun	10	$              320.00	$                        3,200.00	10	$             320.00	$                 3,200.00	0	$              320.00	$                         -
24-Jun	10	$              310.00	$                        3,100.00	5	$             310.00	$                 1,550.00	5	$              310.00	$            1,550.00
29-Jun	8	$              300.00	$                        2,400.00	0	$             300.00	$                              -	8	$              300.00	$            2,400.00
TOTAL	44		$                      13,980.00	31		$               10,030.00	13		$            3,950.00

Answer 3

Ending inventory - $990

Cost of goods sold - $9,690

If any doubts or queries please comment and clarify I'll explain ASAP.