Question

11.12 points 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: Transactions Units Unit Cost Beginning inventory. January 1 330 $4.00 Transactions during the year a. Purchase, January 30 230 2.70 b. Purchase, May 1 390 c. Sale ($6 each) (90) d. Sale ($6 each) 5.00 eBook Print 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-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. References Complete this question by entering your answers in the tabs below. Reg A Req B and c Compute the amount of goods available for sale. $ 3,891 Goods available for sale ROGA Reg Band C >

Answer 1

A.)	Cost of goods available for sale	$ 3,891	=330*4+230*2.7+390*5
B.)	Ending Inventory
		Amount $
	Average Cost	942	=3891/950*230
	First in first out	1,150	=230*5
	Last in first out	920	=230*4
	Specific Identification	745	=(230-54)*2.7 + (54*5)
	Cost of goods sold
		Amount $
	Average Cost	2,949	=3891/950*720
	First in first out	2,741	=(330*4)+(230*2.7)+(160*5)
	Last in first out	2,971	=(390*5)+(230*2.7)+(100*4)
	Specific Identification	3,146	=(90*2/5*4)+(90*3/5*2.7)+((330-36)*4)+(336*5)