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Required information Skip to question [The following information applies to the questions displayed below.] Sandra’s Purse...

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[The following information applies to the questions displayed below.]

Sandra’s Purse Boutique has the following transactions related to its top-selling Gucci purse for the month of October. Sandra's Purse Boutique uses a periodic inventory system.

Date Transactions Units Unit Cost Total Cost
October 1 Beginning inventory 6 $ 700 $ 4,200
October 4 Sale 4
October 10 Purchase 5 710 3,550
October 13 Sale 3
October 20 Purchase 4 720 2,880
October 28 Sale 7
October 30 Purchase 8 730 5,840
$ 16,470

Required:

1. Calculate ending inventory and cost of goods sold at October 31, using the specific identification method. The October 4 sale consists of purses from beginning inventory, the October 13 sale consists of one purse from beginning inventory and two purses from the October 10 purchase, and the October 28 sale consists of three purses from the October 10 purchase and four purses from the October 20 purchase.

  

Required information

Skip to question

[The following information applies to the questions displayed below.]

Sandra’s Purse Boutique has the following transactions related to its top-selling Gucci purse for the month of October. Sandra's Purse Boutique uses a periodic inventory system.

Date Transactions Units Unit Cost Total Cost
October 1 Beginning inventory 6 $ 700 $ 4,200
October 4 Sale 4
October 10 Purchase 5 710 3,550
October 13 Sale 3
October 20 Purchase 4 720 2,880
October 28 Sale 7
October 30 Purchase 8 730 5,840
$ 16,470

Required:

1. Calculate ending inventory and cost of goods sold at October 31, using the specific identification method. The October 4 sale consists of purses from beginning inventory, the October 13 sale consists of one purse from beginning inventory and two purses from the October 10 purchase, and the October 28 sale consists of three purses from the October 10 purchase and four purses from the October 20 purchase.

what is the ending inventory?

what is cost of good sold?

  

Solutions

Expert Solution

Below screenshots shows the excel formula used in above calculations:

COGS = $9,930

Closing Stock or Ending Inventory = $6,540

Further, I would like to request your valuable feedback on the submitted answer. Kindly let me know in case you would like to have any changes made in terms of any adjustments, format changes or disclosures to further enhance the quality and help me in serving you better. Should you have any queries regarding this answer, please let me know.

Best Regards,
Dipesh

ekkarill92 answered 3 months ago
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