Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Van Dyke Company reported the following July purchases and sales data. They also had 25 units @ $26 per unit at the beginning of July.
Van Dyke Company reported the following July purchases and sales data. They also had 25 units @ $26 per unit at the beginning of July. The company uses a perpetual inventory system. Sales Units Date Purchases Units Cost/Unit Total Cost July 1 Beginning Inventory 25 $26 = $650 July 3 Purchase 5 $23 = $115 July 8 Sale July 12 Purchase 5 $21 = $105 July 17 Purchase 13 $22 = $286 July 23 Sale July 31 Purchase 9 $24 = $216 Totals 57 $1,372 Calculate the cost of Goods Sold (COGS) and the Ending Inventory for the month using the Specific Indication method and the additional information below. Instructions for specific identification method: 1. Of the 11 items that were sold on July 8; 9 of them were sold from the beginning inventory and 2 of them were sold from the July 3rd purchase 2. The 26 items that were sold on July 23rd; 9 were sold from beginning inventory, 1 were sold from the July 3rd purchase, 4 were sold from the July 12th purchase, and 12 were sold from the July 17th purchase. Cost of Goods Sold: $ Ending Inventory: $0
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started