accounting week 3 assignment

Inventory
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.
b. Gross profit.
c. Ending inventory.
Date
Beginning Inventory
Purchases
Sales
Cost of Goods Sold
Remaining Inventory Balance
Jan 2
$21,000

$21,000
April 19

$21,800

Woods $21,000
Sunset $21,800 $42,800
June 7

$31,200

Woods $21,000
Sunset $21,800
Earth $31,200 $74,000
Dec 16

$4,000

Woods $21,000
Sunset $21,800
Earth $31,200
Moon $4,000 $78,000
20XX

Woods $21,000 $78,000 -$21,000 $57,000
20Xx

Moon $4,000 $57,000 $4,000 $53,000

Jan 2
Beginning Inventory
$21,000

Purchased painting Woods

$21,000

Paid cash

April 19
Inventory
$21,800

Purchased sunset painting

$21,800

Paid cash

June 7
Inventory
$31,200

Purchased painting Woods

$31,200

Paid cash

Dec 16
Inventory
$4,000

Purchased painting Moon

$4,000

Paid cash

20XX
Accounts Receivable
$35,000

Sales

$35,000

Sold Inventory Cash

20XX
Cost of goods sold
$25,000

Inventory

$25,000

Record the cost of goods sold

Sales
$35,000
Cost of goods sold.
$25,000
Gross profit
$10,000
Ending inventory
$53,000

2. Inventory valuation methods: basic computations. The January