Question

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.

Answer 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	ekkarill92 Next > < Previous Related Solutions 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 1 310 $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. 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