Question

Problem 6-06A a1-a2 You are provided with the following information for Bonita Inc. Bonita Inc. uses the periodic method of accounting for its inventory transactions. March 1 Beginning inventory 2,100 liters at a cost of 70¢ per liter. March 3 Purchased 2,500 liters at a cost of 74¢ per liter. March 5 Sold 2,300 liters for $1.05 per liter. March 10 Purchased 4,000 liters at a cost of 81¢ per liter. March 20 Purchased 2,400 liters at a cost of 894 per liter. March 30 Sold 5,100 liters for $1.25 per liter. Your answer is partially correct. Try again. 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. 125.50.) (1) Specific identification method assuming: 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 m) 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; 1,200 liters from March 20. (2) FIFO (3) LIFO Ending inventory Specific identification 2895 FIFO x LIFO LINK TO TEXT

Answer 1

				FIFO
Date		Units	rate	Ending inventory
1-Mar	Beginning inventory	2100	$                                              0.70	2100
3-Mar	purchases	2500	$                                              0.74	4600
5-Mar	sales	2300	$                                              1.05	2300
10-Mar	purchases	4000	$                                              0.81	6300
20-Mar	purchases	2400	$                                              0.89	8700
30-Mar	sales	5100	$                                              1.25	3600
FIFO	Ending Inventory	=(2400*0.89)+(1200*0.81)	3108
LIFO	Ending Inventory	=((200*0.74)+(2100*0.70)+(1300 *0. 81))	2671

	FIFO	LIFO
Sales Revenue	8790	8790
Cost of goods available for sale	8696	8696
Ending inventory	3108	2671
Cost of goods sold	5588	6025
Gross profit / (loss)	3202	2765

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