Question

USWeyndt, Accounting Pvinciples, 13e Helo 1 Satem Announcements CAR s Preblem 6-06A a1-a2 (Part Level Submission) You are provided with the folowing information for Vaughn Inc. Vaughn Inc. uses the periadic method of accounting for its inventory transactions March 1 Beginning inventory 2,100 ters at a cost of 60c per Rer March 3 Purchased 2,500 liars at a cost of 624 per lter March 5 Sold 2,300 liters fer $1.05 per iter March 10 Purchased 4,000 lters at a cost of 69e per liter March 20 Purchased 2,400 lters at a cost of 77t per liter March 30 Sold 5,100 liters for $1.25 per liter. (a1) Calculate the value of ending inventory that would be reported on the balance sheet, under each of the following cost fow assumptions. (Round answers to 2 decimal places, eg. 125.50.) (1) Specife identification matthod assuming: 0 The March 5 sale coesisted of 1,000 ers from the March 1 beginning inventery and 1,300 iters from the March 3 parchase; and ()The March 30 sale consisted of the following number of units sold from begineing inventory and each purchase: 450 ters from March 1: 550 Mars from March 3: 2,900 ters from March 10: 1,200 ters from March 20. (2) FIFO mde Ending inventory Specific identification FOFO LIFO Click if you would ike to Show Work for this question Quen Shew wark

Answer 1

Solution 1:

Computation of COGS and ending inventory - Specific identification
Particulars	Cost of goods available for sale			Cost of goods sold			Ending Inventory
	Nos of units	Unit Cost	Cost of goods available for sale	Nos of units sold	Unit Cost	Cost of goods sold	Nos of units in ending inventory	Unit Cost	Ending inventory
Beginning inventory	2100	$0.60	$1,260	1450	$0.60	$870.00	650	$0.60	$390.00
Purchases:
3-Mar	2500	$0.62	$1,550	1850	$0.62	$1,147.00	650	$0.62	$403.00
10-Mar	4000	$0.69	$2,760	2900	$0.69	$2,001.00	1100	$0.69	$759.00
20-Mar	2400	$0.77	$1,848	1200	$0.77	$924.00	1200	$0.77	$924.00
Total	11000		$7,418	7400		$4,942.00	3600		$2,476.00

Solution 2:

Computation of COGS and ending inventory - Periodic FIFO
Particulars	Cost of goods available for sale			Cost of goods sold			Ending Inventory
	Nos of units	Unit Cost	Cost of goods available for sale	Nos of units sold	Unit Cost	Cost of goods sold	Nos of units in ending inventory	Unit Cost	Ending inventory
Beginning inventory	2100	$0.60	$1,260	2100	$0.60	$1,260.00	0	$0.60	$0.00
Purchases:
3-Mar	2500	$0.62	$1,550	2500	$0.62	$1,550.00	0	$0.62	$0.00
10-Mar	4000	$0.69	$2,760	2800	$0.69	$1,932.00	1200	$0.69	$828.00
20-Mar	2400	$0.77	$1,848	0	$0.77	$0.00	2400	$0.77	$1,848.00
Total	11000		$7,418	7400		$4,742.00	3600		$2,676.00

solution 3:

Computation of COGS and ending inventory - Periodic LIFO
Particulars	Cost of goods available for sale			Cost of goods sold			Ending Inventory
	Nos of units	Unit Cost	Cost of goods available for sale	Nos of units sold	Unit Cost	Cost of goods sold	Nos of units in ending inventory	Unit Cost	Ending inventory
Beginning inventory	2100	$0.60	$1,260	0	$0.60	$0.00	2100	$0.60	$1,260.00
Purchases:
3-Mar	2500	$0.62	$1,550	1000	$0.62	$620.00	1500	$0.62	$930.00
10-Mar	4000	$0.69	$2,760	4000	$0.69	$2,760.00	0	$0.69	$0.00
20-Mar	2400	$0.77	$1,848	2400	$0.77	$1,848.00	0	$0.77	$0.00
Total	11000		$7,418	7400		$5,228.00	3600		$2,190.00