Question

Carlson Auto Dealers Inc. sells a handmade automobile as its only product. Each automobile is identical; however, they can be distinguished by their unique ID number. At the beginning of 2021, Carlson had three cars in inventory, as follows:

Car ID	Cost
203	$	69,000
207		69,000
210		72,000

During 2021, each of the three autos sold for $99,000. Additional purchases (listed in chronological order) and sales for the year were as follows:

Car ID	Cost			Selling Price
211	$	69,000		$	99,000
212		69,000			102,000
213		70,500		not sold
214		72,000			105,000
215		75,000			109,500
216		73,500		not sold
217		78,000			114,000
218		75,300			115,500
219		81,000		not sold

Required:
1. Calculate 2021 ending inventory and cost of goods sold assuming the company uses the specific identification inventory method.

Answer 1

Caluclation of Ending inventory using specific identification inventory method.
CAR ID	Cost
213	70,500
216	73,500
219	81,000
Total ending inventory	225,000
Caluclation of Cost of Goods Sold using specific identification inventory method.
CAR ID	Cost	Status
203	69,000	Sold
207	69,000
210	72,000
211	69,000
212	69,000
214	72,000
215	75,000
217	78,000
218	75,300
Tota; cost of goods sold	648,300