During the year, Wright Company sells 330 remote-control airplanes for $110 each. The company has the following inventory purchase transactions for the year.

Date Transaction Number

of Units Unit Cost Total Cost

Jan. 1 Beginning inventory 60 $73 $ 4,380

May 5 Purchase 205 76 15,580

Nov. 3 Purchase 110 81 8,910

375 $ 28,870

Calculate ending inventory and cost of goods sold for the year, assuming the company uses specific identification. Actual sales by the company include its entire beginning inventory, 185 units of inventory from the May 5 purchase, and 85 units from the November 3 purchase.

Question

Bentley Andrews

Business

11 May, 05:56

During the year, Wright Company sells 330 remote-control airplanes for $110 each. The company has the following inventory purchase transactions for the year.

Date Transaction Number

of Units Unit Cost Total Cost

Jan. 1 Beginning inventory 60 $73 $ 4,380

May 5 Purchase 205 76 15,580

Nov. 3 Purchase 110 81 8,910

375 $ 28,870

Calculate ending inventory and cost of goods sold for the year, assuming the company uses specific identification. Actual sales by the company include its entire beginning inventory, 185 units of inventory from the May 5 purchase, and 85 units from the November 3 purchase.

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Answers (1)

Know the Answer?

Tess Graves · Answer 1

Ending Stock = 20+25 = 45 and Cost of goods sold = 25325

Explanation:

Date units cost Total Cost Sold Units Ending Stock

1-Jan 60 73 4380 60 -

5-May 205 76 15580 185 20

3-Nov 110 81 8910 85 25

A) using specific identification inventory method

Ending Stock = 20+25 = 45

Cost of goods sold

Date

1-Jan = 60*73 = 4380

5-May = 185*76 = 14060

3-Nov = 85*81 = 6885

Cost of goods sold = 25325