Problem 6-1A Calculate ending inventory and cost of goods sold for four inventory methods (LO6-3)Skip to question [The following information applies to the questions displayed below.]Sandra’s Purse Boutique has the following transactions related to its top-selling Gucci purse for the month of October. Sandra's Purse Boutique uses a periodic inventory system. Date TransactionsUnits Unit Cost Total CostOctober1 Beginning inventory 6 $740 $4,440 October4 Sale 4 October10 Purchase 5 750 3,750 October13 Sale 3 October20 Purchase 4 760 3,040 October28 Sale 7 October30 Purchase 7 770 5,390 $16,620 Problem 6-1A Part 1Required:1. Calculate ending inventory and cost of goods sold at October 31, using the specific identification method. The October 4 sale consists of purses from beginning inventory, the October 13 sale consists of one purse from beginning inventory and two purses from the October 10 purchase, and the October 28 sale consists of three purses from the October 10 purchase and four purses from the October 20 purchase.

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Description: Problem 6-1A Calculate ending inventory and cost of goods sold for four inventory methods (LO6-3)Skip to question [The following information applies to the questions displayed below.]Sandra’s Purse Boutique has the following transactions related to i

Special Identification Method: The Specific identification method identifies the cost of each item…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Problem 6-1A Calculate ending inventory and cost of goods sold for four inventory methods (LO6-3)

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[The following information applies to the questions displayed below.]

Sandra’s Purse Boutique has the following transactions related to its top-selling Gucci purse for the month of October. Sandra's Purse Boutique uses a periodic inventory system.

Date		Transactions	Units	Unit Cost	Total Cost
October	1		Beginning inventory	6		$	740	$	4,440
October	4		Sale	4
October	10		Purchase	5			750		3,750
October	13		Sale	3
October	20		Purchase	4			760		3,040
October	28		Sale	7
October	30		Purchase	7			770		5,390
								$	16,620

Problem 6-1A Part 1

Required:

1. Calculate ending inventory and cost of goods sold at October 31, using the specific identification method. The October 4 sale consists of purses from beginning inventory, the October 13 sale consists of one purse from beginning inventory and two purses from the October 10 purchase, and the October 28 sale consists of three purses from the October 10 purchase and four purses from the October 20 purchase.

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