Boston Cycles started October with 12 bicycles that cost $42 each. On October 16

Question

Boston Cycles started October with 12 bicycles that cost $42 each. On October 16, Boston bought 40 bicycles at $68 each. On October 31, Boston sold 34 bicycles for $100 each. 1. Prepare Boston Cycle's perpetual inventory record assuming the company uses the specific identification inventory costing method. Assume that Boston sold 10 bicycles that cost $42 each and 24 bicycles that 2.Journalize the October 16 purchase of merchandise inventory on account and the October 31 sale of merchandise inventory on account. Requirement 1. Prepare Boston Cycle's perpetual inventory record assuming the company uses the specific identification inventory costing method. Assume that Boston sold 10 bicycles that cost $42 each and 24 cost $68 each. bicycles that cost S68 each. Start by entering the beginning inventory balances. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of inventory purchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first. Abbreviation used: QTY Quantity, Tot. Total) Boston Cycles Cost of Goods Sold Inventory on Hand Date QTY Unit Cost Tot. Cost QTY Unit Cost Tot. Cost QTY Unit Cost Tot. Cost 12 12 40 42 42 68 504 504 2720 16 40 68 2720 31 34 Totals

Explanation / Answer

Solution 1:

Solution 2:

Computation of ending inventory COGS under Specific Identification Date Beginning Inventory Purchase Cost of Goods Sold Ending Inventory Qty Rate Amount Qty Rate Amount Qty Rate Amount Qty Rate Amount 1-Oct 12 $42.00 $504.00 0 $0.00 $0.00 0 $0.00 $0.00 12 $42.00 $504.00 16-Oct 12 $42.00 $504.00 40 $68.00 $2,720.00 0 $0.00 $0.00 12 $42.00 $504.00 40 $68.00 $2,720.00 31-Oct 12 $42.00 $504.00 0 $0.00 $0.00 10 $42.00 $420.00 2 $42.00 $84.00 40 $68.00 $2,720.00 24 $68.00 $1,632.00 16 $68.00 $1,088.00 Total 40 $2,720.00 34 $2,052.00 18 $1,172.00

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