In: Accounting
You are provided with the following information for Barton Inc.
Barton Inc. uses the periodic method of accounting for its
inventory transactions.
March | 1 | Beginning inventory 2,000 liters at a cost of 60¢ per liter. | ||
March | 3 | Purchased 2,500 liters at a cost of 65¢ per liter. | ||
March | 5 | Sold 2,300 liters for $1.05 per liter. | ||
March | 10 | Purchased 4,000 liters at a cost of 72¢ per liter. | ||
March | 20 | Purchased 2,500 liters at a cost of 80¢ per liter. | ||
March | 30 | Sold 5,200 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.
125.25.)
(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; 1,300 liters from March 20. | ||
(2) | FIFO | ||
(3) | LIFO |