Reasoner Sailing Company sells boats as a supplement to its boat storage operati
ID: 2541583 • Letter: R
Question
Reasoner Sailing Company sells boats as a supplement to its boat storage operations. Data for its boat sales for August 2016 are given below. The beginning inventory on August 1 was composed of the following items:
Sales during the month were the 30' Holiday and the 20' Lake King, sold at the retail values shown on August 1.
Based on the above data, what is the best method of valuing the ending inventory?
Determine the value of Reasoner Sailing Company's cost of goods sold and ending inventory of items that were brought over from the beginning inventory using this method. Assume that the company's retail values had not changed.
Reasoner Sailing Company sells boats as a supplement to its boat storage operations. Data for its boat sales for August 2016 are given below. The beginning inventory on August 1 was composed of the following items:
Explanation / Answer
1. Best method of valuing the ending inventory: Specific identification
2. Cost of goods sold: $64000
Cost of Goods Sold
30’ Holiday
$41,000
20’ Lake King
$23,000
Total
$64,000
3. Ending inventory: $111,000
Ending inventory
28’ Starfish
$35,000
30’ Perch
$55,000
24’ Sea King
$21,000
Total
$111,000
Cost of Goods Sold
30’ Holiday
$41,000
20’ Lake King
$23,000
Total
$64,000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.