Question

A physical count of merchandise inventory on November 30 reveals that there are 82 units on hand. Assuming that the specific identification method is used and that ending inventory consists of 25 units from each of the three purchases and 7 units from the November 1 inventory, cost of goods sold is

Answer 1

After computing the cost of inventory that was sold, The Cost of Goods sold is given as $1,334.30.

The calculations related to the exercise are as follows:

From the information provided (see full question attached),

Inventory at hand as at November 1:

• there are 29 Units of Inventory at the cost of $5.90 dollars each.

Purchases:

• 118 units are purchased at $6.30 dollars each;
• 59 units are purchased at $6.15 dollars each; and
• 88 units are bought at $6.50 dollars each.

If at the end of the period there are 25 units each form the purchases above and 7 from the existing inventory as at Nov. 1st, then the cost of goods sold is:


((29-7) X 5.9) +((118-25) x 6.3) + ((59-25) x 6.15) + ((88-25) x 6.5))

= $1,334.30

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