Question

During 2021, a company sells 200 units of inventory for $58 each. The company has the following inventory purchase transactions for 2021: Date Transaction Number of Units Unit Cost Total Cost Jan. 1 Beginning inventory 57 $ 44 $ 2,508 May 5 Purchase 102 43 4,386 Nov. 3 Purchase 74 42 3,108 233 $ 10,002 Actual sales by the company include its entire beginning inventory, 82 units of inventory from the May 5 purchase, and 61 units from the November 3 purchase. Calculate cost of goods sold and ending inventory for 2021 assuming the company uses specific identification.

Answer 1

Answer:

Specific Identification

Cost  of goods sold = $8,596

Closing Inventory = $1,406

Explanation:

COGS

01 Jan 57 *44 = $2,508

05 May 82*43=$3,526

03 Nov 61 * 42 = $2,562

Total =$8,596

Closing Inventory

05 May 20*43=$860

03 Nov 13*42=$546

Total = $1,406