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: Units 470 Unit Cost $5.00 Transactions Beginning inventory, January 1 Transactions during the year: a. Purchase, January 30 b. Purchase. May 1 C. Sale (58 cach) de Sole (58 cach) 4.1 7.00 370 530 230) (770) Required: 6. Compute the amount of goods available for sale 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 Complete this question by entering your answers in the tabs below.

Answer 1

Desired Answers
Cost Of goods available for sale = $ 8047
Part 1	FIFO	LIFO	WAC	SI
Ending Inv.	2590	2220	2173.277372	1917.2
Part 2	FIFO	LIFO	WAC
COGS	5457	5827	5873.722628	6129.8
Working Notes - Kirtland Corporation
In periodic inventory, dates are not considered for calculating cost of each sale, instead cost of goods sold is calculated at the end of period
Total units sold are = 1000 units
FIFO ( periodic )
	Cost of goods available for sale			COGS			Ending Inventory
Date	No. of units	cost p.u	Cost of goods available for sale	No. of units	cost p.u	COGS	No. of units	cost p.u	Ending inventory
beg. Inv.	470	6	2820	470	6	2820
Purchases	370	4.1	1517	370	4.1	1517
	530	7	3710	160	7	1120	370	7	2590
	1370		8047	1000		5457	370		2590
LIFO ( periodic )
	Cost of goods available for sale			COGS			Ending Inventory
Date	No. of units	cost p.u	Cost of goods available for sale	No. of units	cost p.u	COGS	No. of units	cost p.u	Ending inventory
beg. Inv.	470	6	2820	100	6	600	370	6	2220
Purchases	370	4.1	1517	370	4.1	1517
	530	7	3710	530	7	3710
	1370		8047	1000		5827	370		2220
Average cost ( periodic )
	Cost of goods available for sale			COGS			Ending Inventory
Date	No. of units	cost p.u	Cost of goods available for sale	No. of units	cost p.u	COGS	No. of units	cost p.u	Ending inventory
beg. Inv.	470		2820
Purchases	370		1517
	530		3710
	1370	5.873722628	8047	1000	5.873722628	5873.722628	370	5.873722628	2173.277372
Specific Identification method
	Cost of goods available for sale			COGS			Ending Inventory
Date	No. of units	cost p.u	Cost of goods available for sale	No. of units	cost p.u	COGS	No. of units	cost p.u	Ending inventory
beg. Inv.	470	6	2820	92	6	552
Purchases	370	4.1	1517	138	4.1	565.8	232	4.1	951.2
	530	7	3710	378	6	2268
				392	7	2744	138	7	966
	1370		8047	1000		6129.8	370		1917.2