the specific identification method of costing inventories is used when the This is a topic that many people are looking for. newyorkcityvoices.org is a channel providing useful information about learning, life, digital marketing and online courses …. it will help you have an overview and solid multi-faceted knowledge . Today, newyorkcityvoices.org would like to introduce to you How to do Specific Identification Inventory Cost Method. Following along are instructions in the video below:
“Everybody i m about to do chapter five number 38. We re going to do do the inventory systems. But the first one i m going to do is the identification system alright. So here we have a question about laker company reported.
The following january purchases and sales data for its only product. So it s claiming and only have one product laker heads it uses a periodic inventory system for specific identification ending inventory consists of two hundred units where 180 from the january 30th purchase five from the january 20th. Purchase and 15 from beginning inventory determine the cost assigned to the ending inventory. And the cost of goods sold using specific identification.
So specific identification. If you go back to the notes is when we identify an asset as is its very own asset. So we re going to take as the january first beginning inventory is his own basket of assets. The january 20th 160 unit.
Purchase is its own basket of assets..
And the january 30th purchases. Own basket assets. So i m going to let s make a basket for them. And there s 140 of those on january 1st.
There s another basket of assets. And there s sixty of those and this is january twentieth. The purchase and then there s another basket of assets. And there s 100 a of those and this is a january 30.
Purchase now what the question is saying is at the end of the year and on january 30th. This basket over here ended with five units 15. Sorry and the january 20th ended up with five units and the january thirtieth still had 180 so with this diagram. We know that we had to have sold right we sold 125 units from the january 1st.
We had those sold 55 units phone..
January. 20th. And we sold no units from the january 30th. So it s asking us to calculate the cost of goods sold on the cost of goods available for sale and the ending inventory.
So let s do it first. We ll do cost available cost of goods available for sale. So. So how we do that we re going to take all the goods available for sale.
So he had two sets of goods. We had 140 from the beginning inventory. We had 60 from the january 20 purchase and we had 180 from the january 30th purchase. Now the beginning inventory cost us 6.
Each january 20th cost us 5..
Each and the january 30th purchase cost us four dollars and 50 cents each and so if you multiply those across you have eight hundred forty dollars in beginning inventory you have 300 for the january 20 purchase 110 dollars for the ending inventory. So that gives you one thousand nine hundred and fifty dollars for cost of goods available cost of goods available. Now so. The second thing.
Is casa de sol. Now we identified earlier that we sold 125 units from the the beginning inventory at 6000. Ps and we sold 55 units in the january 20th in inventory. At five dollars apiece.
And so if we multiply those out. We get a 150 here and we get two hundred and seven dollars. Here so you add those and you get a 1000. And 25 for cost of goods so so finally it as a okay so you ve got those two what um.
What is your ending inventory now i m going to show you a shortcut so you could take the cost of that s available it by the cost of goods sold if you see we get nine hundred twenty five dollars and that s the ending inventory..
So let s make sure this is correct right so if you remember the first slide. I said at the end um. We only have 15 items from the initial inventory. We have five items from the january 20th inventory we add all 180 items from the january 30th.
Inventory if we multiply those by their costs 6. 5 and 450. We would get 90 25 and eight hundred ten dollars and if we summarized all of those we ll get an answer of nine hundred and twenty five dollars proving that this is correct i hope this video. ” .
.
Thank you for watching all the articles on the topic How to do Specific Identification Inventory Cost Method. All shares of newyorkcityvoices.org are very good. We hope you are satisfied with the article. For any questions, please leave a comment below. Hopefully you guys support our website even more.
description:
tags:
