Kirtland Corporation uses a periodic inventory system. At the end of the annual
ID: 2468587 • Letter: K
Question
Kirtland Corporation uses a periodic inventory system. At the end of the annual accounting period, December 31, 2015, the accounting records for the most popular item in inventory showed the following:
a. Compute the dollar amount of goods available for sale.
Compute the dollar amount of ending inventory and cost of goods sold at December 31, 2015 under Average cost, First-in, first-out, Last-in, first-out, Specific identification of the inventory costing methods. Specific identification: assuming that the first sale was selected two-fifths from the beginning inventory and three-fifths from the purchase of January 30, 2015. Assume that the second sale was selected from the remainder of the beginning inventory, with the balance from the purchase of May 1, 2015. (Do not round intermediate calculations. Round "Specific Identification" to 2 decimal places.)
a. Compute the dollar amount of goods available for sale.
b. & c.Compute the dollar amount of ending inventory and cost of goods sold at December 31, 2015 under Average cost, First-in, first-out, Last-in, first-out, Specific identification of the inventory costing methods. Specific identification: assuming that the first sale was selected two-fifths from the beginning inventory and three-fifths from the purchase of January 30, 2015. Assume that the second sale was selected from the remainder of the beginning inventory, with the balance from the purchase of May 1, 2015. (Do not round intermediate calculations. Round "Specific Identification" to 2 decimal places.)
Explanation / Answer
a,b and c FIFO Method: cost of goods available for sale Cost of Goods Sold Ending Inventory Units $/Unit $$ Units $/Unit $$ Units $/Unit $$ Beginning inventory 400 3 1200 0 30-Jan 300 3.4 1020 0 1-May 460 4 1840 0 160 3 480 0 240 3 720 300 3.4 1020 0 0 160 4 640 300 4 1200 Total 1160 4060 860 3.33 2860 300 4 1200 2) LIFO Method: cost of goods available for sale Cost of Goods Sold Ending Inventory Units $/Unit $$ Units $/Unit $$ Units $/Unit $$ Beginning inventory 400 3 1200 0 30-Jan 300 3.4 1020 0 1-May 460 4 1840 0 160 4 640 0 300 4 1200 300 3.4 1020 0 0 100 3 300 300 3 900 Total 1160 4060 860 3.67 3160 300 3 900 Average Cost: cost of goods available for sale Cost of Goods Sold Ending Inventory Units Avg cost per unit cost of good available for sale Units Avg cost per unit Cost of good sold units Avg cost per unit Ending inventory Beginning inventory 400 26 10400 30-Jan 300 3.4 1020 1-May 460 4 1840 860 11.43 9829.8 300 11.43 3429 Total 1160 11.43 13260 860 11.43 9829.8 300 11.43 3429
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.