Specific Identification E xample Invento Date Purchases Cost of Goods Sold Balance Aug.110@$91 910 $910 Aug315@$106=$1,590 $2,500 Aug 14 9@$91=$819 11 $106 $1,166$515 The Cost of Goods Sold for the August 14 sale is $1, 985, leaving $515 and 5 units in inventory Let报 look at the entries Continue for the Aug 14 sale. Irwin/McGraw-Hill ?The McGrazo-Hill Companies, Inc, 1999
?The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Specific Identification Example The Cost of Goods Sold for the August 14 sale is $1,985, leaving $515 and 5 units in inventory. Continue Date Purchases Cost of Goods Sold Inventory Balance Aug. 1 10 @ $ 91 = $ 910 $ 910 Aug. 3 15 @ $ 106 = $ 1,590 $ 2,500 Aug. 14 9 @ $ 91 = $ 819 11 @ $ 106 = $ 1,166 $ 515 Let抯 look at the entries for the Aug. 14 sale
Specific Identification Example GENERAL JOURNAL Date Account Titles and Explanation De bit Credit Aug 14 Cash Retail 2600 Sales 2,600 14 Cost of Goods Sold Cost 1985 Inventory 1,985 A similar entry is made after each sale Continue Irwin/McGraw-Hill ?The McGraw-Hill Companies, Inc,, 1999
?The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Specific Identification Example Continue GENERAL JOURNAL Date Account Titles and Explanation Debit Credit Aug. 14 Cash 2,600 Sales 2,600 14 Cost of Goods Sold 1,985 Inventory 1,985 Retail Cost A similar entry is made after each sale
Specific Identification Example nventory Date Purchases Cost of Goods Sold Balance Aug 110 $91 $910 910 Aug.3|15@$106=$1590 $2,500 Aug 14 9@$91=$819 11@ $106=$116 1 Aug.1720@$115=$2300 $2,815 Aug2810@5119=$1,190 $4,005 Additional purchases were made on August 17 and 28 Costs associated with sales on August 31 were as folows:1@$91,3@$106,15@$115,&4@$119 Continue Irwin/McGraw-Hill ?The McGraw-Hill Companies, Inc,, 1999
?The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Specific Identification Example Additional purchases were made on August 17 and 28. Costs associated with sales on August 31 were as follows: 1 @ $91, 3 @ $106, 15 @ $115, & 4 @ $119. Continue Date Purchases Cost of Goods Sold Inventory Balance Aug. 1 10 @ $ 91 = $ 910 $ 910 Aug. 3 15 @ $ 106 = $ 1,590 $ 2,500 Aug. 14 9 @ $ 91 = $ 819 11 @ $ 106 = $ 1,166 $ 515 Aug. 17 20 @ $ 115 = $ 2,300 $ 2,815 Aug. 28 10 @ $ 119 = $ 1,190 $ 4,005
Specific Identification E xample Inventor Date Cost of Goods Cost of Goods Sold Balance Aug1 Sold for $910 Aug. 3 $2,500 Aug 14 August 31=9@S91= 5819 $2,610 11@$106=$1166$515 Au.17 $2,815 Aug 28 $4,005 Aug31 91 $91 3@$106 $318 15@$115=$1,725 4@$119=5476$1,395 Irwin/McGraw-Hill ?The McGraw-Hill Companies, Inc., 1999
?The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Date Purchases Cost of Goods Sold Inventory Balance Aug. 1 10 @ $ 91 = $ 910 $ 910 Aug. 3 15 @ $ 106 = $ 1,590 $ 2,500 Aug. 14 9 @ $ 91 = $ 819 11 @ $ 106 = $ 1,166 $ 515 Aug. 17 20 @ $ 115 = $ 2,300 $ 2,815 Aug. 28 10 @ $ 119 = $ 1,190 $ 4,005 Aug. 31 1 @ $ 91 = $ 91 3 @ $ 106 = $ 318 15 @ $ 115 = $ 1,725 4 @ $ 119 = $ 476 $ 1,395 Specific Identification Example Cost of Goods Sold for August 31 = $2,610
Specific Identification Example Inventory Cost of Goods sold Balance 910 Income Statement $2,500 coGs=$4,595 9@$91=$819 11@$106 $1,166$ 515 $2,815 $4,005 @$91=$91 3@$106=$318 15@$115 $1725 4 $119 Balance sheet $476$1,395 Inventory =$1, 395 1@$106=$106 5@$115 575 6@$119 714 Irwin/McGraw-Hill End. Inv. $1,395 Companies, Inc., 1999
?The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Balance Sheet Inventory = $1,395 Income Statement COGS = $4,595 Specific Identification Example 1 @ $ 106 = $ 106 5 @ $ 115 = 575 6 @ $ 119 = 714 End. Inv. $1,395 Date Purchases Cost of Goods Sold Inventory Balance Aug. 1 10 @ $ 91 = $ 910 $ 910 Aug. 3 15 @ $ 106 = $ 1,590 $ 2,500 Aug. 14 9 @ $ 91 = $ 819 11 @ $ 106 = $ 1,166 $ 515 Aug. 17 20 @ $ 115 = $ 2,300 $ 2,815 Aug. 28 10 @ $ 119 = $ 1,190 $ 4,005 Aug. 31 1 @ $ 91 = $ 91 3 @ $ 106 = $ 318 15 @ $ 115 = $ 1,725 4 @ $ 119 = $ 476 $ 1,395