FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
Bartleby Related Questions Icon

Related questions

bartleby

Concept explainers

Question

Help

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:
Unit Cost
$4.00
Transactions
Units
330
Beginning inventory, January 1
Transactions during the year:
Purchase, January 30
b.
230
390
(90)
(630)
2.70
5.00
a.
c.
d.
Purchase, May 1
Sale ($6 each)
Sale ($6 each)
expand button
Transcribed Image Text: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: Unit Cost $4.00 Transactions Units 330 Beginning inventory, January 1 Transactions during the year: Purchase, January 30 b. 230 390 (90) (630) 2.70 5.00 a. c. d. Purchase, May 1 Sale ($6 each) Sale ($6 each)
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.
Complete this question by entering your answers in the tabs below.
Req A
Req B and 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, Specific identification of the 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. (Do not round
intermediate calculations. Round your answers to the nearest whole dollar amount.)
Show lessA
Average Cost
First-In, First-
Out
Last-In, First-
Out
Specific
Identification
Ending inventory
Cost of goods sold
< Req A
Req B and C >
expand button
Transcribed Image Text: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. Complete this question by entering your answers in the tabs below. Req A Req B and 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, Specific identification of the 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. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Show lessA Average Cost First-In, First- Out Last-In, First- Out Specific Identification Ending inventory Cost of goods sold < Req A Req B and C >
Expert Solution
Check Mark
Knowledge Booster
Background pattern image
Accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Text book image
FINANCIAL ACCOUNTING
Accounting
ISBN:9781259964947
Author:Libby
Publisher:MCG
Text book image
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Text book image
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Text book image
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Text book image
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Text book image
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education