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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 each of the four inventory costing methods. For Specific identification, assume the first sale was 40% from beginning inventory and 60% from the January 30 purchase. Assume the second sale was from the remainder of the beginning inventory, with the balance from the May 1 purchase.

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 each of the four inventory costing methods. For Specific identification, assume the first sale was 40% from beginning inventory and 60% from the January 30 purchase. Assume the second sale was from the remainder of the beginning inventory, with the balance from the May 1 purchase.

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's accounting records showed the following at December 31: Unit Cost $3.00 Transactions Beginning inventory, January 1 Transactions during the year: a. Purchase, January 30 b. Purchase, May 1 c. Sale ($5 each) d. Sale ($5 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 each of the four inventory costing methods. Reg A Units 380 For Specific identification, assume the first sale was 40% from beginning inventory and 60% from the January 30 purchase. Assume the second sale was from the remainder of the beginning inventory, with the balance from the May 1 purchase. Req B and C 280 440 (140) (688) Complete this question by entering your answers in the tabs below. Ending inventory Cost of goods sold Average Cost 3.20 4.00 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. Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. First-In, First- Out < Req A Last-In, First. Out Specific Identification Req Band C Show less A
Transcribed Image Text:Kirtland Corporation's accounting records showed the following at December 31: Unit Cost $3.00 Transactions Beginning inventory, January 1 Transactions during the year: a. Purchase, January 30 b. Purchase, May 1 c. Sale ($5 each) d. Sale ($5 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 each of the four inventory costing methods. Reg A Units 380 For Specific identification, assume the first sale was 40% from beginning inventory and 60% from the January 30 purchase. Assume the second sale was from the remainder of the beginning inventory, with the balance from the May 1 purchase. Req B and C 280 440 (140) (688) Complete this question by entering your answers in the tabs below. Ending inventory Cost of goods sold Average Cost 3.20 4.00 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. Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. First-In, First- Out < Req A Last-In, First. Out Specific Identification Req Band C Show less A
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