The following data is available:
$$\begin{array} { | l | l | l | }
\hline \text { On hand at start of period } & 400 \text { units } & \$ 3.00 \text { unit cost } \
\hline \text { First purchase } & 600 \text { units } & \$ 3.50 \text { unit cost } \
\hline \text { Second purchase } & 700 \text { units } & \$ 3.30 \text { unit cost } \
\hline \text { Third purchase } & 500 \text { units } & \$ 3.40 \text { unit cost } \
\hline \text { Number of units available for sale } & 2,200 \text { total units } & \
\hline \text { On hand at end of period } & 600 \text { units } & \
\hline \text { Number of units sold during period } & 1,600 \text { sold } & \
\hline
\end{array}$$ Of the 1600 units sold, 300 were from the beginning inventory, 500 from the first purchase, 600 from the second purchase and 200 from the third purchase. The cost of goods sold under specific unit cost would be:

Question

The following data is available:
$$\begin{array} { | l | l | l | } 
\hline \text { On hand at start of period } & 400 \text { units } & \$ 3.00 \text { unit cost } \
\hline \text { First purchase } & 600 \text { units } & \$ 3.50 \text { unit cost } \
\hline \text { Second purchase } & 700 \text { units } & \$ 3.30 \text { unit cost } \
\hline \text { Third purchase } & 500 \text { units } & \$ 3.40 \text { unit cost } \
\hline \text { Number of units available for sale } & 2,200 \text { total units } & \
\hline \text { On hand at end of period } & 600 \text { units } & \
\hline \text { Number of units sold during period } & 1,600 \text { sold } & \
\hline
\end{array}$$ Of the 1600 units sold, 300 were from the beginning inventory, 500 from the first purchase, 600 from the second purchase and 200 from the third purchase. The cost of goods sold under specific unit cost would be:

Quizplus · Accepted Answer

The cost of goods sold (COGS) under specific unit cost can be calculated by adding the cost of each group of units sold:- 300 units from beginning inventory at $3.00 each = $900- 500 units from the first purchase at $3.50 each = $1,750- 600 units from the second purchase at $3.30 each = $1,980- 200 units from the third purchase at $3.40 each = $680Adding these amounts together gives a total COGS of $5,310.

The Following Data Is Available Of the 1600 Units Sold, 300 Were from the Beginning