Connect homework-chapter 6 (part one The following information applies to the qu

Question

Connect homework-chapter 6 (part one The following information applies to the questions displayed below Park Compeny reported the following March purchases and sales data for its only product Mar. 1 Beginning Inventory 150 units O $ 700-$ 1050 220 units $600- 1.320 90 units $ 5.00 450 Mar. 10 Sales Mar. 20 Purchase Mar. 25 Sales Mar 30 Purchase Units Acquired at CostUnits sold at Retail $15 45 units @ $15 90 units a Totals 460 units $2,820 235 units Park uses a perpetual inventory system. For specific identification, ending Inventory consists of 225 units where 90 are from the March 30 purchose, 80 are from the March 20 purchase, and 55 are from beginning Inventory value 10.00 points 1. Determine the cost assigned to ending inventory and to cost of goods sold using specific identification (Omit the "$ sign in your response.) Ending inventory Cost of goods sold HintsReferences Hint#1

Explanation / Answer

Solution 1:

Total cost of goods available for sale = $2,820

Under specific identification, ending inventory of 225 units consist of, 90 units from March 30 purchase, 80 units from March 20 Purchase, 55 units from beginning inventory.

Therefore value of ending inventory = (90*$5) + (80*$6) + (55*$7) = $1,315

Cost of goods sold = $2,820 - $1,315 = $1,505

Solution 2:

Solution 3:

Computation of ending inventory COGS under Weighted Average Cost - Park Company Date Beginning Inventory Purchase Cost of Goods Sold Ending Inventory Qty Rate Amount Qty Rate Amount Qty Rate Amount Qty Rate Amount 1-Mar 150 $7.00 $1,050 0 $0.00 $0 0 $0.00 $0 150 $7.00 $1,050.00 10-Mar 150 $7.00 $1,050 0 $0.00 $0 90 $7.00 $630 60 $7.00 $420.00 20-Mar 60 $7.00 $420 220 $6.00 $1,320 0 $0.00 $0 280 $6.21 $1,740.00 25-Mar 280 $6.21 $1,740 0 $0.00 $0 145 $6.21 $901 135 $6.21 $839 30-Mar 135 $6.21 $839 90 $5.00 $450 0 $0.00 $0 225 $5.73 $1,289 Total $1,531 $1,289

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