You have the following information for Vaughn Inc. Vaughn Inc. uses the periodic method of accounting for its inventory transactions. March 1 Beginning inventory 2,100 liters at a cost of 60¢ per liter. March 3 Purchased 2,500 liters at a cost of 62¢ per liter. March 5 Sold 2,300 liters for $1.05 per liter. March 10 Purchased 4,000 liters at a cost of 69¢ per liter. March 20 Purchased 2,400 liters at a cost of 77¢ per liter. March 30 Sold 5,100 liters for $1.25 per liter. Calculate the value of ending inventory that would be reported on the balance sheet, under each of the following cost flow assumptions. (Round answers to 2 decimal places, e.g. 125.50.) (1) Specific identification method assuming: (i) The March 5 sale consisted of 1,000 liters from the March 1 beginning inventory and 1,300 liters from the March 3 purchase; and (ii) The March 30 sale consisted of the following number of units sold from beginning inventory and each purchase: 450 liters from March 1; 550 liters from March 3; 2,900 liters from March 10; 1,200 liters from March 20. (2) FIFO (3) LIFO Ending inventory Specific identification $2476 FIFO $2676 LIFO $2190 Prepare partial income statements for 2022 through gross profit, under each of the following cost flow assumptions. (Round answers to 2 decimal places, e.g. 125.25.) (1) Specific identification method assuming: (i) The March 5 sale consisted of 1,000 liters from the March 1 beginning inventory and 1,300 liters from the March 3 purchase; and (ii) The March 30 sale consisted of the following number of units sold from beginning inventory and each purchase: 450 liters from March 1; 550 liters from March 3; 2,900 liters from March 10; 1,200 liters from March 20. (2) FIFO (3) LIFO VAUGHNINC. Income Statement (partial) choose the accounting period Specific Identification FIFO LIFO select an opening name for this statement $enter a dollar amount $enter a dollar amount $enter a dollar amount select an income statement item enter a dollar amount enter a dollar amount enter a dollar amount select an income statement item enter a dollar amount enter a dollar amount enter a dollar amount select a summarizing line for the first part enter a total amount for the first part enter a total amount for the first part enter a total amount for the first part select an income statement item enter a dollar amount enter a dollar amount enter a dollar amount select a summarizing line for the second part enter a total amount for the second part enter a total amount for the second part enter a total amount for the second part select a closing name for this statement $enter a total amount for this statement $enter a total amount for this statement $enter a total amount for this statement
You have the following information for Vaughn Inc. Vaughn Inc. uses the periodic method of accounting for its inventory transactions. March 1 Beginning inventory 2,100 liters at a cost of 60¢ per liter. March 3 Purchased 2,500 liters at a cost of 62¢ per liter. March 5 Sold 2,300 liters for $1.05 per liter. March 10 Purchased 4,000 liters at a cost of 69¢ per liter. March 20 Purchased 2,400 liters at a cost of 77¢ per liter. March 30 Sold 5,100 liters for $1.25 per liter. Calculate the value of ending inventory that would be reported on the balance sheet, under each of the following cost flow assumptions. (Round answers to 2 decimal places, e.g. 125.50.) (1) Specific identification method assuming: (i) The March 5 sale consisted of 1,000 liters from the March 1 beginning inventory and 1,300 liters from the March 3 purchase; and (ii) The March 30 sale consisted of the following number of units sold from beginning inventory and each purchase: 450 liters from March 1; 550 liters from March 3; 2,900 liters from March 10; 1,200 liters from March 20. (2) FIFO (3) LIFO Ending inventory Specific identification $2476 FIFO $2676 LIFO $2190 Prepare partial income statements for 2022 through gross profit, under each of the following cost flow assumptions. (Round answers to 2 decimal places, e.g. 125.25.) (1) Specific identification method assuming: (i) The March 5 sale consisted of 1,000 liters from the March 1 beginning inventory and 1,300 liters from the March 3 purchase; and (ii) The March 30 sale consisted of the following number of units sold from beginning inventory and each purchase: 450 liters from March 1; 550 liters from March 3; 2,900 liters from March 10; 1,200 liters from March 20. (2) FIFO (3) LIFO VAUGHNINC. Income Statement (partial) choose the accounting period Specific Identification FIFO LIFO select an opening name for this statement $enter a dollar amount $enter a dollar amount $enter a dollar amount select an income statement item enter a dollar amount enter a dollar amount enter a dollar amount select an income statement item enter a dollar amount enter a dollar amount enter a dollar amount select a summarizing line for the first part enter a total amount for the first part enter a total amount for the first part enter a total amount for the first part select an income statement item enter a dollar amount enter a dollar amount enter a dollar amount select a summarizing line for the second part enter a total amount for the second part enter a total amount for the second part enter a total amount for the second part select a closing name for this statement $enter a total amount for this statement $enter a total amount for this statement $enter a total amount for this statement
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
You have the following information for Vaughn Inc. Vaughn Inc. uses the periodic method of accounting for its inventory transactions.
March | 1 | Beginning inventory 2,100 liters at a cost of 60¢ per liter. | ||
March | 3 | Purchased 2,500 liters at a cost of 62¢ per liter. | ||
March | 5 | Sold 2,300 liters for $1.05 per liter. | ||
March | 10 | Purchased 4,000 liters at a cost of 69¢ per liter. | ||
March | 20 | Purchased 2,400 liters at a cost of 77¢ per liter. | ||
March | 30 | Sold 5,100 liters for $1.25 per liter. |
Calculate the value of ending inventory that would be reported on the balance sheet, under each of the following cost flow assumptions. (Round answers to 2 decimal places, e.g. 125.50.)
(1) | Specific identification method assuming: | ||
(i) | The March 5 sale consisted of 1,000 liters from the March 1 beginning inventory and 1,300 liters from the March 3 purchase; and | ||
(ii) | The March 30 sale consisted of the following number of units sold from beginning inventory and each purchase: 450 liters from March 1; 550 liters from March 3; 2,900 liters from March 10; 1,200 liters from March 20. | ||
(2) | FIFO | ||
(3) | LIFO |
Ending inventory
|
|||
---|---|---|---|
Specific identification
|
$2476 | ||
FIFO
|
$2676 | ||
LIFO
|
$2190 |
Prepare partial income statements for 2022 through gross profit, under each of the following cost flow assumptions. (Round answers to 2 decimal places, e.g. 125.25.)
(1) | Specific identification method assuming: | ||
(i) | The March 5 sale consisted of 1,000 liters from the March 1 beginning inventory and 1,300 liters from the March 3 purchase; and | ||
(ii) | The March 30 sale consisted of the following number of units sold from beginning inventory and each purchase: 450 liters from March 1; 550 liters from March 3; 2,900 liters from March 10; 1,200 liters from March 20. | ||
(2) | FIFO | ||
(3) | LIFO |
VAUGHNINC.
Income Statement (partial) choose the accounting period |
||||||
---|---|---|---|---|---|---|
Specific Identification
|
FIFO
|
LIFO
|
||||
select an opening name for this statement
|
$enter a dollar amount | $enter a dollar amount | $enter a dollar amount | |||
select an income statement item
|
enter a dollar amount | enter a dollar amount | enter a dollar amount | |||
select an income statement item
|
enter a dollar amount | enter a dollar amount | enter a dollar amount | |||
select a summarizing line for the first part
|
enter a total amount for the first part | enter a total amount for the first part | enter a total amount for the first part | |||
select an income statement item
|
enter a dollar amount | enter a dollar amount | enter a dollar amount | |||
select a summarizing line for the second part
|
enter a total amount for the second part | enter a total amount for the second part | enter a total amount for the second part | |||
select a closing name for this statement
|
$enter a total amount for this statement | $enter a total amount for this statement | $enter a total amount for this statement |
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