Required: a. Compute the amount of goods available for sale. b. & c. Compute the

Question

Required:

a. Compute the amount of goods available for sale.

b. & c. Compute the amount of ending inventory and cost of goods sold at December 31, 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. Assume that the second sale was selected from the remainder of the beginning inventory, with the balance from the purchase of May 1. (Do not round intermediate calculations. Round your "Specific Identification" answers to 2 decimal places.)

Transactions Units Unit Cost Beginning inventory, January 1 400 $3.00 Transactions During the year: a. Purchase, January 30 300 3.40 b. Purchase, May 1 460 4.00 c. Sale ($5 each) (160) d. Sale ($5 each) (700) Kirtland Corporation uses a periodic inventory system. At the end of the annual accounting period, December 31, the accounting records for the most popular item in inventory showed the following Units 400 Unit Cost $3.00 Transactions Beginning inventory, January 1 Transactions During the year: a. Purchase, January 30 b. Purchase, May 1 c. Sale (55 each) 300 460 (160) (700) 3.40 4.00 d. Sale ($5 each) Required a. Compute the amount of goods available for sale s available for sale4,060 b. & c. Compute the amount of ending inventory and cost of goods sold at December 31, 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. Assume that the second sale was selected from the remainder of the beginning inventory, with the balance from the purchase of May 1. (Do not round intermediate calculations. Round your "Specific ldentification" answers to 2 decimal places.) Specific First-In, First-Out First-Out Identification as Average Cost Ending inventory $ Cost of goods sold $ 1,050 1,200 900 3,010$ 2,860 $ 3,160

Explanation / Answer

STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC FIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ Beg. Inv 400 3 1200 400 3 1200 Purchasse 30-Jan 300 3.4 1020 300 3.4 1020 1-May 460 4 1840 160 4 640 300 4 1200 TOTAL 1160 4060 860 2860 300 4 1200 STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC LIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ Beg. Inv 400 3 1200 100 3 300 300 3 900 Purchasse 30-Jan 300 3.4 1020 300 3.4 1020 1-May 460 4 1840 460 4 1840 TOTAL 1160 4060 860 3160 300 4 900 STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC WEIGHTED AVERAGE METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ Beg. Inv 400 3 1200 Purchasse 30-Jan 300 3.4 1020 1-May 460 4 1840 TOTAL 1160 3.5 4060 860 3.5 3010 300 3.5 1050 STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC SPECIFIC IDENTIFICATION METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ Beg. Inv 400 3 1200 400 3 1200 Purchasse 30-Jan 300 3.4 1020 96 3.4 326 204 3.4 694 1-May 460 4 1840 364 4 1456 96 4 384 TOTAL 1160 4060 860 2982 300 4 1078 Req A: Cost of goods available for sale: DATE UNITS RATE AMOUNT $ Beg. Inv 400 3 1200 Purchasse 30-Jan 300 3.4 1020 1-May 460 4 1840 TOTAL 1160 4060 Req B7C: FIFO LIFO AVERAGE SEPCIFIC Cost of Goods sold 2860 3160 3010 2982 Ending inventory 1200 900 1050 1078

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