In: Accounting
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:
Transactions | Units | Unit Cost | |
Beginning inventory, January 1 | 370 | $4.00 | |
Transactions during the year: | |||
a. | Purchase, January 30 | 270 | 3.10 |
b. | Purchase, May 1 | 430 | 5.00 |
c. | Sale ($6 each) | (130) | |
d. | Sale ($6 each) | (670) | |
Required:
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 and Specific identification inventory costing methods. For Specific identification, assume 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.
FIFO METHDO | ||||||||||
COST OF GOODS AVAILABLE FOR SALE | COST OF GOODS SOLD | CLOSING STOCK | ||||||||
Date | Particulars | Units | Cost Per unit | Total | Units | Cost Per unit | Cost of Goods Sold | Units | Cost Per unit | Ending inventory |
Jan.01 | Beginning Inventory | 370 | $ 4.00 | $ 1,480 | 370 | $ 4.00 | $ 1,480 | |||
Jan.30 | Purchases | 270 | $ 3.10 | $ 837 | 270 | $ 3.10 | $ 837 | |||
May.01 | Purchases | 430 | $ 5.00 | $ 2,150 | 160 | $ 5.00 | $ 800 | 270 | $ 5.00 | $ 1,350 |
Total Goods Available For sale | 1,070 | $ 4,467 | 800 | $ 3,117 | 270 | $ 1,350 | ||||
LIFO METHDO | ||||||||||
COST OF GOODS AVAILABLE FOR SALE | COST OF GOODS SOLD | CLOSING STOCK | ||||||||
Date | Particulars | Units | Cost Per unit | Total | Units | Cost Per unit | Cost of Goods Sold | Units | Cost Per unit | Ending inventory |
Jan.01 | Beginning Inventory | 370 | $ 4.00 | $ 1,480 | 100 | $ 4.00 | $ 400 | 270 | $ 4.00 | $ 1,080 |
Jan.30 | Purchases | 270 | $ 3.10 | $ 837 | 270 | $ 3.10 | $ 837 | |||
May.01 | Purchases | 430 | $ 5.00 | $ 2,150 | 430 | $ 5.00 | $ 2,150 | |||
Total Goods Available For sale | 1,070 | $ 4,467 | 800 | $ 3,387 | 270 | $ 1,080 | ||||
AVERAGE COST METHOD | ||||||||||
COST OF GOODS AVAILABLE FOR SALE | COST OF GOODS SOLD | CLOSING STOCK | ||||||||
Date | Particulars | Units | Cost Per unit | Total | No. of Kg | Cost Per unit | Cost of Goods Sold | No. of Kg | Cost Per unit | Ending inventory |
Jan.01 | Beginning Inventory | 370 | $ 4.00 | $ 1,480 | ||||||
Jan.30 | Purchases | 270 | $ 3.10 | $ 837 | ||||||
May.01 | Purchases | 430 | $ 5.00 | $ 2,150 | ||||||
Total Goods Available For sale / Avg. Price | 1,070 | 4.17 | 4,467 | 800 | 4.17 | 3,340 | 270 | 4.17 | 1,127 | |
Specific Identification Method | ||||||||||
COST OF GOODS AVAILABLE FOR SALE | COST OF GOODS SOLD | CLOSING STOCK | ||||||||
Date | Particulars | Units | Cost Per unit | Total | No. of Kg | Cost Per unit | Cost of Goods Sold | No. of Kg | Cost Per unit | Ending inventory |
Jan.01 | Beginning Inventory | 370 | $ 4.00 | $ 1,480 | 370 | $ 4.00 | $ 1,480 | |||
Jan.30 | Purchases | 270 | $ 3.10 | $ 837 | 78 | $ 3.10 | $ 242 | 192 | $ 3.10 | $ 595 |
May.01 | Purchases | 430 | $ 5.00 | $ 2,150 |
Related SolutionsKirtland Corporation uses a periodic inventory system. At the end of the annual accounting period, December...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:
Transactions
Units
Unit Cost
Beginning inventory,
January 1
310
$6.00
Transactions during
the year:
a.
Purchase, January 30
210
2.50
b.
Purchase, May 1
370
7.00
c.
Sale ($8 each)
(70)
d.
Sale ($8 each)
(610)
Required:
a. Compute the amount of goods available for
sale.
b. & c. Compute...
Kirtland Corporation uses a periodic inventory system. At the end of the annual accounting period, December...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:
Transactions Units Unit
Cost Beginning inventory, January 1 350 $6.00 Transactions
during the year:
a. Purchase, January 30 250 $ 2.90
b. Purchase, May 1 410 $7.00
c. Sale ($8 each) (110)
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accounting records provided the following information for product
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the annual accounting period, December 31 of the current year, the
accounting records provided the following information for product
2:
Units
Unit Cost
Inventory, December 31, prior year
2,890
$
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Unit Cost
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Nittany Company uses a periodic inventory system. At the end of the annual accounting period, December...Nittany Company uses a periodic inventory system. At the end of
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accounting records provided the following information for product
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Units
Unit Cost
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1,960
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2,900
8
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