Kirtland Corporation uses a periodic inventory system. At the end of the annual accounting period,...
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Accounting
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:
Transactions
Units
Unit Cost
Beginning inventory, January 1
300
$4.00
Transactions during the year:
a.
Purchase, January 30
200
2.40
b.
Purchase, May 1
360
5.00
c.
Sale ($6 each)
(60)
d.
Sale ($6 each)
(600)
Note: You may find it helpful to review the videos posted to Connect titled "Chapter 7 Guided Help Video - LIFO & FIFO" and "Chapter 7 Video - Calculating Average Cost."
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.
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