Question

Carlson Auto Dealers Inc. sells a handmade automobile as its only product. Each automobile is identical; however, they can be distinguished by their unique ID number. At the beginning of 2021, Carlson had three cars in inventory, as follows:

Car ID	Cost
203	$	66,000
207		66,000
210		69,000

During 2021, each of the three autos sold for $96,000. Additional purchases (listed in chronological order) and sales for the year were as follows:

Car ID	Cost			Selling Price
211	$	66,000		$	96,000
212		66,000			99,000
213		67,500		not sold
214		69,000			102,000
215		72,000			106,500
216		73,500		not sold
217		75,000			111,000
218		72,300			112,500
219		78,000		not sold

Required:
1. Calculate 2021 ending inventory and cost of goods sold assuming the company uses the specific identification inventory method.

Specific Identification Method

Ending inventory:

Cost of goods sold:

2. Calculate ending inventory and cost of goods sold assuming FIFO and a periodic inventory system.

Ending Inventory:

Cost of Goods Sold:

3. Calculate ending inventory and cost of goods sold assuming LIFO and a periodic inventory system.

Ending Inventory:

Cost of goods sold:

4. Calculate ending inventory and cost of goods sold assuming the average cost method and a periodic inventory system.

Ending Inventory:

Cost of good sold:

Answer 1