Question

ABC sells 28 units for $50 each on December 15. Of the units sold, 14 are from the December 7 purchase and 14 are from the December 14 purchase. ABC uses a perpetual inventory system. Determine the costs assigned to the December 31 ending inventory when costs are assigned based on specific identification.

Answer 1

Answer:

Closing inventory based on Specific IDENTIFICATION

7 Dec purchase ( 20-16) = 4 * $16 = $64

14 Dec purchase ( 35 -14) = 21*$24 = $504

21 Dec purchase            30*$29 = $870

                    closing inventory  31 Dec                                 = $1438

Explanation:

The question is incomplete but here is a complete one

Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases. Also, on December 15, Monson sells 30 units for $40 each.

 

Purchases on December 7 20 units @ $16.00 cost  

Purchases on December 14 35 units @ $24.00 cost

Purchases on December 21 30 units @ $29.00 cost

Required:

Monson sells 30 units for $40 each on December 15. Of the units sold, 16 are from the December 7 purchase and 14 are from the December 14 purchase. Monson uses a perpetual inventory system. Determine the costs assigned to the December 31 ending inventory when costs are assigned based on specific identification.