ACC 205 Week Three Exercise Assignment

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: 21,000 4,000 25,000

b. gross profit: 35,000 - 25,000 10, 000

c. ending inventory: 21,800 31,200 53,000

1. 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...