Brief Exercise 6-8 Calculate ending inventory and cost of goods sold using speci

Question

Brief Exercise 6-8 Calculate ending inventory and cost of goods sold using specific identification (LO6-3) During the year, Wright Company sels 480 remote-control aiplanes for S100 each. The company has the following inventory purchase transactions for the year Number Jan. 1Beginning inventary May 5 Purchase Nov. 3 Purchase of Urits Unit Coet Total Cost $T0 3,500 18,980 16,380 50 73 78 210 $ 38,860 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, 230 units of inventory from the May 5 purchase, and 200 units from the November 3 Units Sold Unit Co Goods Sold g Inventory Unit Cost Date Jan Beginning Inventory May5 Purchase Nov. 3 Purchaee Activity 70S 3,500 73 78 70 73 78 50 S 3,500 References eBook & Resources

Explanation / Answer

Calculate cost of goods sold and ending inventory under specific identification :

Date activity Unit sold unit cost Cost of goods sold Ending inventory unit unit cost Ending inventory cost Jan 1 Beginning inventory 50 70 3500 May 5 Purchase 230 73 16790 30 73 2190 Nov 3 Purchase 200 78 15600 10 78 780 Total 480 35890 40 2970

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