Specific Identification Method E’s Diamond Shop is computing its inventory and cost of goods sold for November 2009. At the beginning of the month, these items were in stock:

During the month, the shop purchased four type A rings at $600, two type B rings at $450, and five type C rings at $300 and made the following sales:

Because of the high cost per item, E’s uses specific identification inventory costing.
1. Calculate the cost of goods sold and ending inventory balances for November.
2. Calculate the gross margin for the month.

Transcribed Image Text:

Ring A Quantity Cost Total 8 Ring A 10 Ring B Ring B Ring B Ring C Ring C DO563T8 $600 $ 4,800 650 6,500 300 1,500 350 2,100 450 1,350 7 200 1,400 250 2,000 $19,650