Problem:
Specific Identification inventory method
Date Activities Units Acquired at Cost Units sold at Retail
Jan. 1 Beg. Inventory 60 units @ $10=$600
Jan. 10 Sales 61 units @ $40
Mar. 14 Purchase 173 units @ $15=$2,595
Mar. 15 Sales 90 units @ $40
July 30 Purchase 260 units @ $20=$5,200
Oct. 5 Sales 140 units @ $40
Oct 26 Purchase 410 units @ $25=$10,250
Totals 903 units $18,645 291 units
Required:
Assume that ending inventory is made up of 70 units from the March 14 purchase, 130 units from the July 30 purchase, and all the units of the October 26 purchase. Using the specific identification method, calculate the cost of goods sold and the gross profit.
Cost of goods sold $_______
Gross Margin $___________