required information the following information applies to the questions displayed below. sandras purse…

required information the following information applies to the questions displayed below. sandras purse boutique has the following transactions related to its top - selling gucci purse for the month of october. date transactions units unit cost total cost october 1 beginning inventory 6 $900 $5,400 october 4 sale 4 october 10 purchase 5 910 4,550 october 13 sale 3 october 20 purchase 4 920 3,680 october 28 sale 7 october 30 purchase 7 930 6,510 $20,140 required: 1. calculate ending inventory and cost of goods sold at october 31, using the specific identification method. the october 4 sale consists of purses from beginning inventory, the october 13 sale consists of one purse from beginning inventory and two purses from the october 10 purchase, and the october 28 sale consists of three purses from the october 10 purchase and four purses from the october 20 purchase.

required information the following information applies to the questions displayed below. sandras purse boutique has the following transactions related to its top - selling gucci purse for the month of october. date transactions units unit cost total cost october 1 beginning inventory 6 $900 $5,400 october 4 sale 4 october 10 purchase 5 910 4,550 october 13 sale 3 october 20 purchase 4 920 3,680 october 28 sale 7 october 30 purchase 7 930 6,510 $20,140 required: 1. calculate ending inventory and cost of goods sold at october 31, using the specific identification method. the october 4 sale consists of purses from beginning inventory, the october 13 sale consists of one purse from beginning inventory and two purses from the october 10 purchase, and the october 28 sale consists of three purses from the october 10 purchase and four purses from the october 20 purchase.

Answer

Explanation:

Step1: Calculate units sold

For Oct 4 sale: 4 units from beginning inventory. For Oct 13 sale: 1 unit from beginning inventory and 2 units from Oct 10 purchase. For Oct 28 sale: 3 units from Oct 10 purchase and 4 units from Oct 20 purchase. Total units sold = 4+(1 + 2)+(3 + 4)=14 units.

Step2: Calculate units in ending inventory

Beginning inventory + Purchases - Units sold = Ending inventory Total units available = 6+5 + 4+7=22 units Ending inventory units = 22 - 14 = 8 units

Step3: Calculate cost of goods sold

Cost of Oct 4 sale: 4×$900 = $3600 Cost of Oct 13 sale: 1×$900+2×$910 = $900 + $1820=$2720 Cost of Oct 28 sale: 3×$910+4×$920 = $2730+ $3680=$6410 Cost of goods sold = $3600 + $2720+ $6410=$12730

Step4: Calculate ending inventory cost

Total cost of inventory = $20140 Ending inventory cost = $20140 - $12730=$7410

Answer:

Ending Inventory: $7410 Cost of goods sold: $12730