Question

Required information (The following information applies to the questions displayed below. Carlson Auto Dealers Inc. sells a handmade automobile as its only product. Each automobile is identical; however, they can be distinguished by their unique ID number. At the beginning of 2021, Carlson had three cars in inventory, as follows: Car ID 203 207 210 Cost $72,000 72,000 75,000 During 2021, each of the three autos sold for $102,000. Additional purchases listed in chronological order) and sales for the year were as follows: Car ID 211 212 213 Cost $72,000 72,000 73,500 75,000 78,000 76,500 81,000 78,300 84,000 Selling Price $ 102,000 105,000 not sold 108,000 112,500 not sold 117,000 118,500 not sold un a 219

Answer 1

Cost of goods available for sale S.No Car ID Cost 72,000 72,000 203 2 207 75,000 210 72,000 72,000 4 211 5 212 6 213 73,500 7 214 75,000 78,000 215 9 216 76,500 10 217 81,000 11 218 78,300 12 84,000 219 Total 12 909,300

1) Specific Identification Ending Inventory Car ID Cost 213 73,500 216 76,500 84,000 219 Ending Inventory 234,000 Cost of goods available for sale Less: Ending Inventory 909,300 (234,000) Cost of goods sold 675,300 Ending Inventory Cost of goods sold 234,000 675,300

2) FIFO Under FIFO method goods bought first should be sold first. Number of Car ID not sold Ending Inventory Car ID Cost 217 81,000 218 78,300 84,000 219 Ending Inventory 243,300 Cost of goods available for sale Less: Ending Inventory Cost of goods sold 909,300 (243,300) 666,000 Ending Inventory Cost of goods sold 243,300 666,000

|3) LIFO Under LIFO method goods bought last should be sold first Number of Car ID not sold 3 Ending Inventory Car ID Cost 72,000 203 207 72,000 210 75,000 Ending Inventory 219,000 Cost of goods available for sale Less: Ending Inventory Cost of goods sold 909,300 (219,000) 690,300 Ending Inventory 219,000 Cost of goods sold 690,300

4) Average cost Total cost of goods available for sale Number of Car ID produced Average cost per car ID (909,300/12) $ 909,300 12. $ 75,775 Number of car id not sold Ending Inventory (3x $ 75,775) $ 227,325 Cost of goods available for sale Less: Ending Inventory Cost of goods sold 909,300 (227,325) 681,975 Ending Inventory Cost of goods sold 227,325 681,975