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

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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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

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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