Opster sells prisms that it buys from a few different suppliers. Each supplier\'
ID: 2555891 • Letter: O
Question
Opster sells prisms that it buys from a few different suppliers. Each supplier's prisms are identifiable by Opster. At the beginning of August, Opster had 805 prisms that were all from Supplier 1 for 8 each. On August 8, Opster purchased 650 prisms for $6 each from Supplier 2. On August 17, Opster purchased 120 prisms for $5 each from Supplier 3. At a trade fair on August 30, Opster sold some the prisms. At the end of August, Opster still had the following prisms 475 prisms from Supplier 1 550 prisms from Supplier 2 10 prisms from Supplier 3 How many prisms did Opster sell in August? 1035 What is "Cost of goods available for sale" for August? 10940 Assume Opster uses the Specific Identification Method for costing inventory. What is Opster's Cost of goods sold for August? What is the cost of Opster's ending inventory at August 31?Explanation / Answer
Working Note :
Computation of Cost of purchase , COGS & inventory value
Particulars
A
Price per unit ($)
B
Units
C
Amount ($)
D = C * B
Units
E = C- G
Amount ($)
F= E * B
Units
G
Amount ($)
H = G *B
Answer 1
Prism did opster sell in August = 540 [ Working note 'column E' total ]
Answer 2
Cost of goods available for sales = $10,940 [ Working note 'column D' total ]
Answer 3
Cost of goods sold using specific indentification method = $3,790 [ Working note 'column F' total ]
Answer 4
Cost of ending inventory = $7,150 [ Working note 'column H' total ]
Cost of purchase COGS InventoryParticulars
A
Price per unit ($)
B
Units
C
Amount ($)
D = C * B
Units
E = C- G
Amount ($)
F= E * B
Units
G
Amount ($)
H = G *B
Supplier 1 8 805 6,440 330 2,640 475 3,800 Supplier 2 6 650 3,900 100 600 550 3,300 Supplier 3 5 120 600 110 550 10 50 Total 1,575 $10,940 540 $3,790 1,035 $7,150Related Questions
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