In December, Daniel’s Paintings purchased the following items:

On December 22nd, paintings A and E were sold for $2,500 each.

(a) Calculate the ending inventory, cost of goods sold and gross profit using specific identification.

(b) When calculating inventory, what is the ideal situation to use specific identification?

(c) What is one advantage and disadvantage of using specific identification?

Transcribed Image Text:

Date Purchased Dec. 5 10 12 19 20 Painting ABCDE Cost $1000 $ 800 $1100 $ 700 $1200 Date Purchased Dec. 5 10 12 19 20 Painting ABCDE Cost $1000 $ 800 $1100 $ 700 $1200 Date Purchased Dec. 5 10 12 19 20 Painting ABCDE Cost $1000 $ 800 $1100 $ 700 $1200 Date Purchased Dec. 5 10 12 19 20 Painting ABCDE Cost $1000 $ 800 $1100 $ 700 $1200

Answer rating: 100% (QA)

a Purchase Sales GP ab Date Painting Cost a Date Painting Valueb Gross Profit Dec Dec 5 A 1000 22 A ... View the full answer