Kirtland Corporation uses a periodic inventory system. At the end of the annual accounting period, December 31,
Question:
Kirtland Corporation uses a periodic inventory system. At the end of the annual accounting period, December 31, 2015, the accounting records for the most popular item in inventory showed the following:
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Required:
Compute the amount of (a) goods available for sale, (b) ending inventory, and (c) cost of goods sold at December 31, 2015, under each of the following inventory costing methods (show computations and round to the nearest dollar):
1. Average cost (round the average cost per unit to the nearest cent).
2. First-in, first-out.
3. Last-in, first-out.
4. Specific identification, assuming that the first sale was selected two-fifths from the beginning inventory and three-fifths from the purchase of January 30, 2015. Assume that the second sale was selected from the remainder of the beginning inventory, with the balance from the purchase of May 1,2015.
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Step by Step Answer:
a Goods available for sale for all methods Unit Total Units Cost Cost January 1 2015Beginning invent...View the full answer
Financial Accounting
ISBN: 978-0078025556
8th edition
Authors: Robert Libby, Patricia Libby, Daniel Short
