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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 30 230 390 2.70 5.00 a. b. Purchase, May 1 c. Sale ($6 each) Sale ($6 each) (90) (630) d.

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 30 230 390 2.70 5.00 a. b. Purchase, May 1 c. Sale ($6 each) Sale ($6 each) (90) (630) d.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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)
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 >
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 >
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