Question

Find end inventory and cost of goods

Answer 1

Answer:

End inventory = $4,730

Cost of goods sold = $10,310

Explanation:

Note: This question is not complete. The complete question is therefore provided in the attached Microsoft word document before answering the question as follows:

a. Calculation of ending inventory

Number of units of Beginning inventory remaining unsold = 16 - 11 - 3 - 1 = 1 unit

Value of number of units Beginning inventory remaining unsold = 1 * $340 = $340

Number of units June 12 Purchase remaining unsold = 10 - 9 = 1 unit

Value of number of units June 12 Purchase remaining unsold = 1 * $330 = $330

Number of units of June 24 Purchase remaining unsold = 10 - 7 = 3 units

Value of number of June 24 Purchase remaining unsold = 3 * $320 = $960

Value of number of June 29 Purchase remaining unsold = 10 * $310 = $3,100

Therefore, End inventory is the addition of all the values of units remaining unsold as follows:

End inventory = $340 + $330 + $960 + $3,100 = $4,730

b. Calculation of cost of goods sold

June 7 cost of goods sold = 11 * $340 = $3,740

June 15 cost of goods sold = (3 * $340) + (9 * $330) = $3,990

June 27 cost of goods sold = (1 * $340) + (7 * $320) = $2,580

Cost of goods sold can therefore be calculated as follows:

Cost of goods sold = June 7 cost of goods sold + June 15 cost of goods sold + June 27 cost of goods sold = $3,740 + $3,990 + $2,580 = $10,310

Download docx