How to figure out the specific identification method?

sweetkendra · #1 Nov 26, 2007, 10:47 AM

This is what I was given to answer: Use this inventory information for the month of June to answer the following question.

June 1 Beginning inventory 10 units @ $120
5 Purchase 60 units @ $112
14 Sale 40 units
21 Purchase 30 units @ $116
30 Sale 28 units

What is cost of goods sold under the Specific Identification Method?Assuming the periodic method was used
a) More information is needed.
b) $3,704
c) $7,696
d) $7,736

Please help

student 101 · Nov 26, 2007, 12:10 PM

Quote:

Originally Posted by sweetkendra

This is what I was given to answer: Use this inventory information for the month of June to answer the following question.

June 1 Beginning inventory 10 units @ $120
5 Purchase 60 units @ $112
14 Sale 40 units
21 Purchase 30 units @ $116
30 Sale 28 units

What is cost of goods sold under the Specific Identification Method?Assuming the periodic method was used
a) More information is needed.
b) $3,704
c) $7,696
d) $7,736

Please help

more info is needed bacause in order to use this method we need to know each item and be able to identified for inventory purposes we do not use this method because is a waste of time . instead we use lifo fifo and weigth average

qcmar24 · Nov 26, 2007, 12:47 PM

Quote:

Originally Posted by sweetkendra

This is what I was given to answer: Use this inventory information for the month of June to answer the following question.

June 1 Beginning inventory 10 units @ $120
5 Purchase 60 units @ $112
14 Sale 40 units
21 Purchase 30 units @ $116
30 Sale 28 units

What is cost of goods sold under the Specific Identification Method?Assuming the periodic method was used
a) More information is needed.
b) $3,704
c) $7,696
d) $7,736

Please help

in order for you to do the specific identification method you need to know the specific price for which each unit was sold at.
then the answer to your Qs is "a" more info is needed

student 101 · Nov 26, 2007, 12:51 PM

when a question is answer please do not repeat my answers



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