Compute the amount of goods available for sale Goods available for sale. Compute

Question

Compute the amount of goods available for sale Goods available for sale. Compute the amount of ending inventory and cost of goods sold at December 31. 2015 under Average cost, First-in, first-out, Last-in, first-out, Specific identification of the inventory costing methods. Specific identification: assuming that the first sale was selected two-fifths from the beginning inventory and three-fifths from the purchase of January 30. 2015. Assume that the second sale was selected from the remainder of the beginning inventory, with the balance from the purchase of May 1, 2015.

Explanation / Answer

Details Unit Rate Amt $ Beginning Inventory Jan 1.2015.                 350 6          2,100 Add Purchases : Jan 30. Purchases                 250 2.9       725.00 May 1. Purchases                 410 7          2,870 Total Purchases                 660          3,595 Goods Available for sale             1,010          5,695 Specific identification sales Details 1 Sales 110 units 2/5 th from beginnig inventory                   44 6             264 3/5 th from Jan 30 purchase                   66 2.9       191.40 Total sale 1                 110             455 2 Sales 2 -650 units Remaining units in beginning inventory                 306 6          1,836 Balance from May 1. sale                 344 7          2,408 Total sale 2                 650          4,244 Total Cost of goods sold                 760    4,699.40 Ending Inventory Jan 30. Purchases                 184 2.9       533.60 May 1. Purchases                   66 7       462.00 Total Ending Inventory                 250       995.60 By specific identification method Ending Inventory $       995.60 Cost of Goods Sold $   4,699.40

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