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Solution Library
Calculation of COGS, Gross Profit and Ending Inventory
Question
Boston Galleries uses the specific identification method for inventory valuation. Inventory information for several oil paintings follows.
|
Painting |
Cost |
||
|
1/2 Beginning inventory |
Woods |
$11,000 |
|
|
4/19 Purchase |
Sunset |
21,800 |
|
|
6/7 Purchase |
Earth |
31,200 |
|
|
12/16 Purchase |
Moon |
4,000 |
|
Woods and Moon were sold during the year for a total of $35,000. Determine the firm’s
a. cost of goods sold.
b. gross profit.
c. ending inventory.
Total Word Count 28
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