Question

. Calculate ending inventory and cost of goods sold at June 30, using the specific identification method. The June 7 sale consists of fishing reels from beginning inventory, the June 15 sale consists of three fishing reels from beginning inventory and nine fishing reels from the June 12 purchase, and the June 27 sale consists of one fishing reel from beginning inventory and seven fishing reels from the June 24 purchase.

Answer 1

Without specific costs or quantities of inventory, it's not possible to calculate ending inventory and cost of goods sold using the specific identification method. This method requires detailed tracking of each individual item's cost and movement.

Step-by-step explanation:

To calculate the ending inventory and cost of goods sold (COGS) using the specific identification method, we need a list of all the transactions including sales and purchases, along with the costs of items purchased and sold. Unfortunately, the provided information does not include specific costs or quantities of the beginning inventory or the purchases made. Therefore, in order to calculate the ending inventory and COGS, we would need to know the cost of each fishing reel in beginning inventory, the cost of fishing reels in each purchase on June 12 and June 24 as well as the quantity of the inventory after each transaction.

Specific identification method requires us to track each item individually through its purchase and sale. For instance, if the beginning inventory consisted of 10 fishing reels at a cost of $50 each, and 10 were sold from that inventory on various dates, we would subtract $500 (10 reels x $50) from the cost of beginning inventory for COGS and calculate the ending inventory accordingly.

Answer 2

$2,320

Step-by-step explanation:

It is given that the cost of goods sold should be calculated as per specific identification method. Cost of goods sold consists of total cost of sales which includes the product of the unit and cost per unit of sales. The sale on June 7 consists of the cost of $190 as per beginning inventory. The sale on June 15 consists of the sale of 3 fishing reels from beginning inventory which costs $190 per unit and 9 fishing reels from units purchased on June 12 which, costs $180 per unit. Likewise, the sale on June 29 consists of cost of $190 and cost of $170 from the purchase of June 24. Thus, the cost of goods sold is $7,980.

It is given that the total cost is $7,980. The cost of goods sold is $5,660. Cost of ending inventory can be found by deducting cost of goods sold from the total cost. Thus, the total cost of ending inventory is $2,320.

See attached picture for further explanation.