Question

Date Units Purchased Cost Per Unit

January 1 10 $8.00 (Beginning Inventory)
January 18 50 $9.00
February 20 20 $11.00
March 15 10 $12.00 (Ending Inventory: 19)

The specific identification method indicates the following units to be on hand: January 1, (2); January 18, (5); February 20, (6); March 15, (6). The cost of goods sold is

Answer 1

$671.00

Explanation:

Answer 2

Cost of Goods sold= $ 671

Explanation:

On Jan 1 Units Purchased = 10

and Units on hand = 2

so goods sold = 10 - 2 =8

On Jan 18 Units Purchased = 50

and Units on hand = 5

so goods sold = 50 - 5 = 45

On Feb 20 Units Purchased = 20

and Units on hand = 6

so goods sold = 20 - 6 = 14

On march 15 Units Purchased = 10

and Units on hand = 6

so goods sold = 10 - 6 = 4

So, the cost of gods sold can be found by multiplying good sold on each day with its cost per unit and then adding them

cost of gods sold = goods sold on Jan 1 * Cost per unit + goods sold on Jan 18 * Cost per unit + goods sold on Feb 20 * Cost per unit +goods sold on March 15 * Cost per unit

cost of gods sold = 8*8 + 45*9 + 14*11 + 4*12

= 64+405+154+48

= 671