Determine the cost assigned to ending inventory and to cost of goods sold using specific identification. For specific identification, ending inventory consists of 390 units, where 370 are from the January 30 purchase, 5 are from the January 20 purchase, and 15 are from beginning inventory.

Question

Cullen Valenzuela

Business

7 September, 14:19

Determine the cost assigned to ending inventory and to cost of goods sold using specific identification. For specific identification, ending inventory consists of 390 units, where 370 are from the January 30 purchase, 5 are from the January 20 purchase, and 15 are from beginning inventory.

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Master · Answer 1

Instructions are listed below.

Explanation:

Giving the following information:

For specific identification, ending inventory consists of 390 units, where 370 are from the January 30 purchase, 5 are from the January 20 purchase, and 15 are from beginning inventory.

We weren't provided with enough information to answer the requirement. But, I can give you the answer using simulated numbers.

Under specific identification, the company calculates the ending inventory and cost of goods sold with the exact units that were sold or remain in inventory.

For example:

Beginning inventoy = $15 per unit

Jan. 30: $17 per unit

Jan. 20: $16 per unit

Ending inventory = 370*17 + 5*16 + 15*15 = $6,595