Laser Listening has the following inventory data: Nov. 1 Inventory 20 units @ $4

Question

Laser Listening has the following inventory data:

Nov. 1

Inventory

20 units @ $4.00 each

8

Purchase

120 units @ $4.30 each

17

Purchase

60 units @ $4.20 each

25

Purchase

90 units @ $4.40 each

A physical count of merchandise inventory on November 30 reveals that there are 100 units on hand. Assuming that the specific identification method is used and that ending inventory consists of 30 units from each of the three purchases and 10 units from the November 1 inventory, cost of goods sold is

$857.

$817

$436

$421

Nov. 1

Inventory

20 units @ $4.00 each

8

Purchase

120 units @ $4.30 each

17

Purchase

60 units @ $4.20 each

25

Purchase

90 units @ $4.40 each

Explanation / Answer

Its mentioned that ending inventory consists of 10 units from Nov.1 entry, it means 10 units from Nov.1 inventory were sold.

On the other hand, 30 units were pending from each of the purchase, so 90, 30 and 60 units were sold from purchases on 8th, 17th and 25th respectively.

Units sold Cost Total 10 4 40 90 4.3 387 30 4.2 126 60 4.4 264 COGS 817

Related Questions

Navigate

• Browse (All)
• Browse L
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.