Question

Problem 6-06A a1-a2 You are provided with the following information for Vaughn Inc. Vaughn Inc. uses the periodic method of accounting for its inventory transactions. March 1 Beginning inventory 2,100 liters at a cost of 60¢ per liter. March 3 Purchased 2,500 liters at a cost of 62¢ per liter. March 5 Sold 2,300 liters for $1.05 per liter. March 10 Purchased 4,000 liters at a cost of 69¢ per liter. March 20 Purchased 2,400 liters at a cost of 77¢ per liter. March 30 Sold 5,100 liters for $1.25 per liter.

Calculate the value of ending inventory that would be reported on the balance sheet, under each of the following cost flow assumptions. (Round answers to 2 decimal places, e.g. 125.50.) (1) Specific identification method assuming: (i) The March 5 sale consisted of 1,000 liters from the March 1 beginning inventory and 1,300 liters from the March 3 purchase; and (ii) The March 30 sale consisted of the following number of units sold from beginning inventory and each purchase: 450 liters from March 1; 550 liters from March 3; 2,900 liters from March 10; 1,200 liters from March 20. (2) FIFO (3) LIFO Ending inventory Specific identification $ FIFO $ LIFO $ LINK TO TEXT

Prepare partial income statements for 2020 through gross profit, under each of the following cost flow assumptions. (Round answers to 2 decimal places, e.g. 125.25.) (1) Specific identification method assuming: (i) The March 5 sale consisted of 1,000 liters from the March 1 beginning inventory and 1,300 liters from the March 3 purchase; and (ii) The March 30 sale consisted of the following number of units sold from beginning inventory and each purchase: 450 liters from March 1; 550 liters from March 3; 2,900 liters from March 10; 1,200 liters from March 20. (2) FIFO (3) LIFO VAUGHN INC. Income Statement (partial) For the Year Ended December 31, 2020For the Month Ended December 31, 2020December 31, 2020 Specific Identification FIFO LIFO PurchasesCost of goods available for saleBeginning inventoryGross profit / (Loss)Cost of goods soldEnding inventorySales revenue $ $ $ Cost of goods available for saleCost of goods soldBeginning inventoryEnding inventoryPurchasesGross profit / (Loss)Sales revenue Cost of goods available for saleCost of goods soldEnding inventoryGross profit / (Loss)Sales revenueBeginning inventoryPurchases Cost of goods soldCost of goods available for saleSales revenueEnding inventoryGross profit / (Loss)Beginning inventoryPurchases Sales revenueBeginning inventoryGross profit / (Loss)PurchasesCost of goods available for saleEnding inventoryCost of goods sold Cost of goods available for saleEnding inventoryCost of goods soldGross profit / (Loss)Sales revenueBeginning inventoryPurchases Beginning inventoryEnding inventoryPurchasesCost of goods available for saleCost of goods soldGross profit / (Loss)Sales revenue $ $ $ Click if you would like to Show Work for this question: Open Show Work

Answer 1