Assume that Sparks uses a perpetual specific identification inventory system. Its ending inventory consists of 2 units from beginning inventory, 4 units from the Jan. 5 purchase, and 10 units from the Jan. 29 purchases. Calculate the dollar value of its ending inventory. Date Activity Jan 1 Beginning Inventory 10 @ $12 Jan 5 Purchase 10 @ $15 Jan 29 Purchase 10 @ $18 Jan 30 Sale 14 units $160 $450 Reason: This is the total inventory available. O $186 Reason: You figured what was sold. What is left =(2@$12)+(4@$15) +(10@$18). The question states the units left in ending inventory. O $264
Assume that Sparks uses a perpetual specific identification inventory system. Its ending inventory consists of 2 units from beginning inventory, 4 units from the Jan. 5 purchase, and 10 units from the Jan. 29 purchases. Calculate the dollar value of its ending inventory. Date Activity Jan 1 Beginning Inventory 10 @ $12 Jan 5 Purchase 10 @ $15 Jan 29 Purchase 10 @ $18 Jan 30 Sale 14 units $160 $450 Reason: This is the total inventory available. O $186 Reason: You figured what was sold. What is left =(2@$12)+(4@$15) +(10@$18). The question states the units left in ending inventory. O $264
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Having some trouble solving specific identifications, thank you ahead of time.
Transcribed Image Text:Assume that Sparks uses a perpetual specific identification inventory system. Its ending inventory consists of 2 units from beginning inventory, 4 units
from the Jan. 5 purchase, and 10 units from the Jan. 29 purchases. Calculate the dollar value of its ending inventory.
Date
Activity
Jan 1
Beginning Inventory
10 @ $12
Jan 5
Purchase
10 @ $15
Jan 29
Purchase
10 @ $18
Jan 30
Sale
14 units
O $160
$450
Reason: This is the total inventory available.
$186
Reason: You figured what was sold. What is left =(2@$12)+(4@$15) +(10@$18). The question states the units left in ending inventory.
$264
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education