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Brief Exercise 6-8 Calculate ending inventory and cost of goods sold using specific identification (LO6-3)...

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Accounting

Brief Exercise 6-8 Calculate ending inventory and cost of goods sold using specific identification (LO6-3)

During the year, Wright Company sells 470 remote-control airplanes for $110 each. The company has the following inventory purchase transactions for the year.

Date Transaction Number of Units Unit Cost Total Cost
Jan. 1 Beginning inventory 60 $ 82 $ 4,920
May. 5 Purchase 250 85 21,250
Nov. 3 Purchase 200 90 18,000
510 $ 44,170

Calculate ending inventory and cost of goods sold for the year, assuming the company uses specific identification. Actual sales by the company include its entire beginning inventory, 230 units of inventory from the May 5 purchase, and 180 units from the November 3 purchase.

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