Specific Identification example p e Inventory Date Purchases Cost of Goods sold Balance Au 10@$9 $910 $910 Au9.3|15@$106=$1590 $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 look at the entries Continue for the Aug 14 sale Irwin/McGraw-Hill The McGraw-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 2,600 Sales 2600 14 Cost of Goods Sold Cost 1,985 Inventor 1985 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 ventory Date Purchases Cost of Goods sold Balance Aug 10@$91 $910 $910 Aug315@$106=$1,590 $2,500 Aug14 9@$91=$819 11@$106 $1,166$515 Aug.1720@115-:2300 $2,815 Aug.2810@5119=510 $4,005 Additional purchases were made on August 17 and 28. Costs associated with sales on August 31 were as follows:1@$91,3@$106,15@$115,84@$119 Irwin/McGraw-Hill Continue ?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 Example Inventory Date Cost of Goods Cost of Goods Sold Balance Aug 1 Sold for $910 Aug. 3 $2,500 A1 August31=「9@59= $819 $2,610 $106 1,166$515 Aug. 17 $2,815 Aug. 28 $4005 Aug 31 $91 3@5106三$318 15@$115=$1,725 4@$119=$476$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=$4595 9@$91 $819 $106=$1,166$ 515 $2,815 $4,005 @$91 $91 3@$106 $318 15@$115=$1,725 $476$1,395 Balance sheet 4@$119 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