Question

During 2021, a company sells 160 units of inventory for $53 each. The company has the following inventory purchase transactions for 2021:

Date		Transaction	Number of Units			Unit Cost			Total Cost
Jan.	1	Beginning inventory		58		$	43			$	2,494
May	5	Purchase		104			42				4,368
Nov.	3	Purchase		75			41				3,075
				237						$	9,937

Actual sales by the company include its entire beginning inventory, 84 units of inventory from the May 5 purchase, and 18 units from the November 3 purchase.

Calculate cost of goods sold and ending inventory for 2021 assuming the company uses specific identification.

Answer 1

Specific Identification Method Ending Inventory Cost per Ending unit Inventory No of units goods Cost of goods Available for sale No of Cost of goods Cost per Available for units unit sale 58 2494 104 4368 3075 237 9937 Cost of Goods sold Cost of No of Cost per units unit sold 43 2494 84 42] 3528 41 738 160 6760 Jan-01 May-05 Nov-03 42 - 42 41 75 57 7 7 840 2337 3177 Total