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. (a1)     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   $enter a dollar amount    FIFO   $enter a dollar amount    LIFO   $enter a dollar amount

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Topic Video
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.

(a1)

 
 
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
  $enter a dollar amount   
FIFO
  $enter a dollar amount   
LIFO
  $enter a dollar amount 
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Accounting for Merchandise Inventory
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education