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Determine the cost of goods sold and ending merchandise inventory by preparing a perpetual inventory record...

Determine the cost of goods sold and ending merchandise inventory by preparing a perpetual inventory record using the specific identification method. Assume the following costing information for the books sold during the​ month: Aug 3: 4 books for $14, Aug 15: 4 books costing $14 and 5 books costing $20 each, Aug 28: 2 books costing $20 each and 4 books costing $29 each.... Aug 1 Beginning Merchandise Inventory 12 books @ $14 each; Aug 3 : Sold 4 books @ $18 each; Aug 12 Purchased 8 books @20 each; Aug 15 sold 9 books @$18 each; Aug 20 Purchased 5 books @ $29; Aug 28 Sold 6 books @ $20 each (Purchases, Cost of Goods, Inventory on Hand)

date qty
date Qty Unit Cost Tot Cost Qty Unit Cost Tot Cost Qty

Unit Cost

 Tot Cost
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Answer #1

Solution

1) Specific Identification Method

Purchases Cost of Goods Sold Inventory on Hand
Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost
Aug 1 12 $14 $168
Aug 3 4 $14 $56 8 $14 $112
Aug 12 8 $20 $160 8 $14 $112
8 $20 $160
Aug 15 4 $14 $56 4 $14 $56
5 $20 $100 3 $20 $60
Aug 20 5 $29 $145 4 $14 $56
3 $20 $60
5 $29 $145
Aug 28 2 $20 $40 4 $14 $56
4 $29 $116 1 $20 $20
1 $23 $23
Totals 13 $305 19 $368 6 $99

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