In: Finance
Using the specific identification method: Date Units purchased Cost per unit Ending inventory March 1 15 Xbox′s 360 $ 275 2 Xbox′s from March April 1 45 Xbox′s 360 250 15 Xbox′s from April May 1 60 Xbox′s 360 240 12 Xbox′s from May
a. Calculate the ending inventory.Ending inventory $:
b. Calculate the cost of goods sold. Cost of goods sold $:
Ans. | Specific Identification: | |||||||||
Available for sale | Cost of goods sold | Ending inventory | ||||||||
Purchase date | Units | Rate | Cost | Units | Rate | Cost | Units | Rate | Cost | |
1-Mar | 15 | $275 | $4,125 | 13 | $275 | $3,575 | 2 | $275 | $550 | |
1-Apr | 45 | $250 | $11,250 | 30 | $250 | $7,500 | 15 | $250 | $3,750 | |
1-May | 60 | $240 | $14,400 | 48 | $240 | $11,520 | 12 | $240 | $2,880 | |
Total | $29,775 | Cost of goods sold | $22,595 | Ending inventory | $7,180 | |||||
Ending Inventory | $7,180 | |||||||||
Cost of goods sold | $22,595 | |||||||||
Units sold = Units available for sale - Ending inventory units | ||||||||||
*Calculations: | ||||||||||
Date | Units available | Ending inventory | Sold units | |||||||
(a) | units (b) | (a - b) | ||||||||
1-Mar | 15 | 2 | 13 | |||||||
1-Apr | 45 | 15 | 30 | |||||||
1-May | 60 | 12 | 48 | |||||||