identification method
1. Specific identification method. Boston Galleries uses the specific identification method for inventory valuation. Inventory information for several oil paintings follows.
Painting | Cost | ||
1/2 Beginning inventory | Woods | $21,000 | |
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.
2. Inventory valuation methods: basic computations. The January beginning inventory of the Gilette Company consisted of 300 units costing $40 each. During the first quarter, the company purchased two batches of goods: 700 Units at $44 on February 21 and 800 units at $50 on March 28. Sales during the first quarter were 1,400 units at $75 per unit. The White Company uses a periodic inventory system. Using the White Company data, fill in the following chart to compare the results obtained under the FIFO, LIFO, and weighted-average inventory methods.
FIFO | LIFO | Weighted Average | |||
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Goods available for sale | $ | $ | $ | ||
Ending inventory, March 31 | |||||
Cost of goods sold | |||||
12 years ago
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