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 1 360 $5.00 Transactions during the year: a. Purchase, January 30 260 3.00 b. Purchase, May 1 420 6.00 c. Sale ($7 each) (120) d. Sale ($7 each) (660) 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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Chapter1: Financial Statements And Business Decisions
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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: Transactions Units Unit Cost Beginning
inventory, January 1 360 $5.00 Transactions during the year: a. Purchase, January 30 260 3.00 b. Purchase, May
1 420 6.00 c. Sale ($7 each) (120) d. Sale ($7 each) (660) 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.
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: Transactions Units Unit Cost Beginning inventory, January 1 360 $5.00 Transactions during the year: a. Purchase, January 30 260 3.00 b. Purchase, May 1 420 6.00 c. Sale ($7 each) (120) d. Sale ($7 each) (660) 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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