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 410 Unit Cost $4.00 Transactions Beginning inventory, January 1 Transactions during the year: Purchase, January 30 Purchase, May 1 Sale ($6 each) d. Sale ($6 each) 3.50 5.00 310 470 (170) (710) Required: a. 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-it 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

Units Requirement (a) Activity Beginning Inventory Purchases, January 30 Purchases, May 1 Amount of Goods Available for sale 410 $ 310 $ 470 $ 1190 Unit Cost Total Cost 4.00 $ 1,640.00 3.50 1,085.00 5.00 $ 2,350.00 $ 5,075.00 Requirement (b&c) Ending Inventory Cost of goods sold Average Cost First in First out Last in First out Specific Iden $ 1,322 $ 1,550 $ 1,240 $ 1,238 $ 3,753 $ 3,525 $ 3,835 $ 3,837 Note : Do Comment For Any Further Assistance Note : Average Cost First in First out Last in First out Specific Iden Ending Inventory 5075/1190*310 310*5 310*4 5075-3837 Cost of goods sold 5075/1190*880 5075-1550 5075-1240 (170*2/5*4)+(170*3/5*3.5))+((342*4)+(368*5))