Refer to the information in QS 5-10 and assume the periodic inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on specific identification. Of the units sold, eight are from the December 7 purchase and seven are from the December 14 purchase. (Round per unit costs and inventory amounts to cents.)
Ending Inventory totals $378.
The method of allocating the cost to ending inventory and the cost of goods sold by keeping close track of the inventory is known as specific identification. Under this method, each method is allocated with its particular acquisition cost.
Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales transactions. (For specific identification, units sold consist of 600 units from beginning inventory, 300 from the February 10 purchase, 200 from the March 13 purchase, 50 from the August 21 purchase, and 250 from the September 5 purchase.)
Units acquired at cost
Units sold at retail
600 units @ $45.00 per unit
400 units @ $42.00 per unit
200 units @ $27.00 per unit
800 units @ $75.00 per unit
100 units @ $50.00 per unit
500 units @ $46.00 per unit
600 units @ $75.00 per unit
3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. (Round all amounts to cents.)
Question: Comparative figures for Apple and Microsoft follow
|Current year||One year Prior||Two years prior||Current year||One year Prior||Two years prior|
Cost of Sales
Compute days’ sales in inventory for each company for the three years shown.
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