Roki Inc.uses the periodic inventory system. June $\begin{array}{rlr}
1 & \text { On hand, 50 units @ \$15.00 each } & \$ 750.00 \
5 & \text { Purchased 115 units @, \$15.10 each } & 1,736.50 \
14 & \text { Purchased 75 units @ \$15.20 each } & \underline{1,140.00} \
& \text { Total cost of goods available for sale } & \underline{\$ 3.626 .50}\
30&\text { On hand, } 90 \text { units }\
\end{array}$ ? If the June 30th inventory included 45 units from the June 5th purchase and 45 units from the June 14th purchase, Roki's cost of goods sold for June under the specific identification method would be

Question

Quizplus · Accepted Answer

Under the specific identification method, the cost of goods sold is calculated by specifically identifying which units were sold and their purchase costs. The beginning inventory had 50 units at $15.00 each, totaling $750. The June 5th purchase added 115 units at $15.10 each, totaling $1,736.50, and the June 14th purchase added 75 units at $15.20 each, totaling $1,140. The ending inventory on June 30th included 45 units from the June 5th purchase and 45 units from the June 14th purchase. To find the cost of goods sold, subtract the cost of the ending inventory from the total cost of goods available for sale.Cost of ending inventory:- 45 units from June 5th purchase: 45 units * $15.10 = $679.50- 45 units from June 14th purchase: 45 units * $15.20 = $684.00Total cost of ending inventory: $679.50 + $684.00 = $1,363.50Total cost of goods available for sale: $3,626.50Cost of goods sold: $3,626.50 - $1,363.50 = $2,263.00

Roki IncUses the Periodic Inventory System ? If the June 30th Inventory Included 45 Units from