Concept explainers
(a)
The ending inventory by specific identification method for goods available for sale.
(a)
Answer to Problem 1ECP
The cost of ending inventory is
Explanation of Solution
Tabulate the given data as shown below.
Date | Units purchased | Unit cost | Total cost |
March 1 | 15 Xbox’s 360 | $275 | 4125 |
April 1 | 45 Xbox’s 360 | $250 | 11250 |
May 1 | 60 Xbox’s 360 | $240 | 14400 |
Goods available for sale | 120 | 29,775 |
From the table;
The number of units available for sale
The cost of goods available for sale
The calculation of cost of ending inventory is shown below.
Ending inventory | Unit cost | Total cost |
2 Xbox’s from March | $275 | $550 |
15 Xbox’s from April | $250 | 3750 |
12 Xbox’s from May | $240 | 2880 |
Cost of ending inventory | 7180 |
Hence, cost of ending inventory is
(b)
The cost of goods sold by specific identification method for goods available for sale.
(b)
Answer to Problem 1ECP
The cost of goods sold is
Explanation of Solution
Tabulate the given data as shown below.
Date | Units purchased | Unit cost | Total cost |
March 1 | 15 Xbox’s 360 | $275 | 4125 |
April 1 | 45 Xbox’s 360 | $250 | 11250 |
May 1 | 60 Xbox’s 360 | $240 | 14400 |
Goods available for sale | 120 | 29,775 |
From the table;
The number of units available for sale
The cost of goods available for sale
The calculation of cost of ending inventory is shown below.
Ending inventory | Unit cost | Total cost |
2 Xbox’s from March | $275 | $550 |
15 Xbox’s from April | $250 | 3750 |
12 Xbox’s from May | $240 | 2880 |
Cost of ending inventory | 7180 |
cost of ending inventory
Hence, cost of goods sold is
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Chapter 18 Solutions
Practical Business Math Procedures
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