Question
Trout company uses a perpetual system and made purchases and sales of a particular product as follows: Date Purchase Number of units Cost per unit
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Trout company uses a perpetual system and made purchases and sales of a particular product as follows:
Trout company uses a perpetual system and made purchases and sales of a particular product as follows:
| Date | Purchase | Number of units | Cost per unit | Total Cost |
| Jan 1 | beginning | 75 | $12.00 | $900 |
| March 14 | purchase | 80 | $13.00 | $1040 |
| July 30 | purchase | 500 | $14.00 | $7000 |
| October 4 | purchase | 450 | $15.00 | $6750 |
| Units available | 1105 | |||
| Cost of Goods | $15690 |
The company makes sales in the following dates
| Date | Sale | Number of units |
| Jan 10 | sale | 60 units |
| March 15 | sale | 40 units |
| Oct 15 | sale | 350 units |
| Total | 450 units | |
The company makes sales in the following dates using special identification method
| Date | Number of unit |
| Jan 10 | 60 units from the beginning inventory |
| March 15 | 15 from the beginning inventory 30 units from the March 14 purchase |
| Oct 15 | 50 units from March 14 purchase 350 units from Oct 4 purchase |
| Total |
Assign the cost of the inventory using the
specific identification method
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Cost Accounting An Introduction To Cost Management Systems
Authors: Philip Jagolinzer
1st Edition
0324015828, 978-0324015829
