Storme Shutters has the following inventory information. $\begin{array}{rrr}
\text { Nov. }&1 & \text { Inventory } & 30 \text { units } @ \$ 8.00 \
&8 & \text { Purchase } & 120 \text { units } \$ 8.30 \
&17 & \text { Purchase } & 60 \text { units } \$ 8 .40 \
&25 & \text { Purchase } & 90 \text { units } \$ 8.80
\end{array}$ A physical count of merchandise inventory on November 30 reveals that there are 80 units on hand. Assuming that the specific identification method is used and that ending inventory consists of 20 units from each of the three purchases and 20 units from the November 1 inventory, cost of goods sold is

Question

Quizplus · Accepted Answer

To calculate cost of goods sold using specific identification method, we need to identify which units were sold and at what cost. Based on the given information, the cost of the 20 units sold from the November 1 inventory is $55 x 20 = $1,100.

The cost of the 20 units sold from the November 15 purchase is $58 x 20 = $1,160.

The cost of the 20 units sold from the November 20 purchase is $60 x 20 =$1,200.

Therefore, the total cost of goods sold is $1,100 + $1,160 + $1,200 = $3,460.

Since the ending inventory consists of 20 units from each of the three purchases and 20 units from the November 1 inventory, the cost of the ending inventory is $55 x 20 + $58 x 20 + $60 x 20 = $1,860.

Thus, the cost of goods sold is $3,460 - $1,860 = $1,600.

Therefore, the correct answer is C) $1,862.

Storme Shutters Has the Following Inventory Information A Physical Count of Merchandise Inventory on November 30 Reveals