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Sandra's Purse Boutique has the following transactions related to its top-selling Gucci purse for the month of October. Sandra's Purse Boutique uses a periodic inventory system.
Date Transactions Units Unit Cost Total Cost
October1 Beginning inventory 6 $780 $4,680
October4 Sale 4
October10 Purchase 5 790 3,950
October13 Sale 3
October20 Purchase 4 800 3,200
October28 Sale 7
October30 Purchase 6 810 4,860
$16,690
Required:
Question 1: Calculate ending inventory and cost of goods sold at October 31, using the specific identification method. The October 4 sale consists of purses from beginning inventory, the October 13 sale consists of one purse from beginning inventory and two purses from the October 10 purchase, and the October 28 sale consists of three purses from the October 10 purchase and four purses from the October 20 purchase.
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