Pregunta
Knowledge Check 01
A company uses a periodic inventory system. On August 1 , the company had 6 items of beginning inventory with a cost of
On August 3 , the company purchased 16 units at
consisted of 7 units from the August
cost of the 12 units sold is
Cost of the units sold
A company uses a periodic inventory system. On August 1 , the company had 6 items of beginning inventory with a cost of
On August 3 , the company purchased 16 units at
consisted of 7 units from the August
cost of the 12 units sold is
Cost of the units sold
Ask by Park Wells. in the United States
Mar 26,2025
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The cost of the 12 units sold is $133.
Solución
- On August 1, the beginning inventory was 6 units at a cost of
per unit. - On August 3, the company purchased 16 units at a cost of
per unit. - On August 5, a sale occurred where 12 units were sold. It was specifically identified that 7 units were from the August 3 purchase and 5 units were from the August 1 beginning inventory.
- The cost of the 7 units from the August 3 purchase is calculated as:
- The cost of the 5 units from the beginning inventory is calculated as:
- The total cost of the 12 units sold is the sum of these two amounts:
Thus, the cost of the 12 units sold is
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To find the cost of the 12 units sold using specific identification, we will calculate the cost based on the specific units sold. The cost of the 5 units taken from the beginning inventory is:
For the 7 units from the purchase on August 3rd, the cost is:
Now, we add both costs together:
Thus, the total cost of the units sold is
Another fun fact: The periodic inventory system dates back to when merchants relied on physical counts to determine what they had in stock. Unlike perpetual systems, where updates are instantaneous, periodic systems often lead to surprises when inventory is counted at the end of a period! Isn’t it intriguing how the approach to inventory management has evolved over centuries?
Additionally, if you’re diving into inventory management, consider exploring various inventory valuation methods — LIFO, FIFO, and weighted average. Each has implications on financial statements and tax liabilities! It’s a treasure trove of knowledge waiting for you as you delve deeper into the accounting world.
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