During the year, Wright Company sells 390 remote-control airplanes for $120 each. The company has the following inventory purchase transactions for the year. Date Transaction Number of Units Unit Cost Total Cost January 1 Beginning inventory 40 $77 $3,080 May 5 Purchase 225 80 18,000 November 3 Purchase 150 85 12,750 415 $33,830 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, 205 units of inventory from the May 5 purchase, and 145 units from the November 3 purchase.
During the year, Wright Company sells 390 remote-control airplanes for $120 each. The company has the following inventory purchase transactions for the year. Date Transaction Number of Units Unit Cost Total Cost January 1 Beginning inventory 40 $77 $3,080 May 5 Purchase 225 80 18,000 November 3 Purchase 150 85 12,750 415 $33,830 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, 205 units of inventory from the May 5 purchase, and 145 units from the November 3 purchase.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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During the year, Wright Company sells 390 remote-control airplanes for $120 each. The company has the following inventory purchase transactions for the year.
| Date | Transaction | Number of Units | Unit Cost | Total Cost |
|---|---|---|---|---|
| January 1 | Beginning inventory | 40 | $77 | $3,080 |
| May 5 | Purchase | 225 | 80 | 18,000 |
| November 3 | Purchase | 150 | 85 | 12,750 |
| 415 | $33,830 |
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, 205 units of inventory from the May 5 purchase, and 145 units from the November 3 purchase.
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