Question

LUS eveandt, Accounting Principles, 13e ECES 21 Problem 6-06A al-a2 (Part Level Submission) You are provided with the following information for Crane Inc. Crane Inc. uses the periodic method of accounting for its inventory transactions. March 1 Beginning inventory 2,000 liters at a cost of 60$ per liter. March 3 Purchased 2,500 liters at a cost of 64¢ per liter. March 5 Sold 2,300 liters for $1.05 per liter. March 10 Purchased 4,000 liters at a cost of 71€ per liter. March 20 Purchased 2,200 liters at a cost of 790 per liter. March 30 Sold 5,000 liters for $1.25 per liter. (al) 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 plac (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 () 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; 2,90 (2) FIFO (3) LIFO y Study Ending inventory Specific identification FIFO UFO Click if you would like to show Work for this question: Open Show Work LINK TO TEXT

Answer 1

23 Monday 1) Specific identification method . = Balance stock March (2000-1000-450) @ 60 = 33000 March 3 =(2500-1300-550) @ 64 = 41600 March lo =(2000-2900) @ 71 = 78100 March 20 =(2200-110o) @ 29 = 86900 239600