A company uses a periodic inventory system. On August 1, the company had 6 items of beginning inventory with a cost of $7 per unit. On August 3, the company purchased 16 units at $14 per unit. Then, on August 5, the company sold 12 units. The 12 units sold consisted of 7 units from the August 3rd purchase and 5 units from the August 1st beginning inventory. Using specific identification, the cost of the 12 units sold is _____.

A company uses a periodic inventory system. On August 1, the company had 6 items of beginning inventory with a cost of $7 per unit. On August 3, the company purchased 16 units at $14 per unit. Then, on August 5, the company sold 12 units. The 12 units sold consisted of 7 units from the August 3rd purchase and 5 units from the August 1st beginning inventory.

Cost of goods sold= 7*14 + 5*7= $133

abiolataiwo2015 abiolataiwo2015 · Answer 2 · 2021-10-15T14:21:27+02:00

If a company uses a periodic inventory system. On August 1, the company had 6 items of beginning inventory with a cost of $7 per unit using specific identification, the cost of the 12 units sold is $133

Using this formula

Cost of units sold=(Units from the August 3rd×Purchased from August 3rd)+(Units for August 1×Purchased from August 3rd)

Where:

Units from the August 3rd=7 units

Purchased from August 3rd=$14

Units for August 1=5 units

Purchased from August 3rd=$7

Let plug in the formula

Cost of units sold=(7×$14)+(5×$7)

Cost of units sold=$98+$35

Cost of units sold=$133

Inconclusion If a company uses a periodic inventory system. On August 1, the company had 6 items of beginning inventory with a cost of $7 per unit using specific identification, the cost of the 12 units sold is $133

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