Specific cost

# Specific cost - October 10 then the ending value of...

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Specific cost . Companies can use the specific cost method only when the purchase date and cost  of each unit in inventory is identifiable. For the most part, companies that use this method sell a  small number of expensive items, such as automobiles or appliances.  If specially coded price tags or some other technique enables Zapp Electronics to determine that 15  units in ending inventory were purchased on April 10 and the remaining 85 units were purchased on
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Unformatted text preview: October 10, then the ending value of inventory and the cost of goods sold can be determined precisely. Units Per Unit Cost Total Cost + Purchase–April 10 15 × \$16 = 240 Purchase–October 10 85 × \$17 = 1,445 Ending Inventory 100 \$ 1,685 \$ 7,200 Cost of Goods Available for Sale \$ 7,200- Ending Inventory (1,685) = Cost of Goods Sold \$ 5,515...
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