Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Carlson Auto Dealers Inc. sells a handmade automobile as its only product. Each automobile is identical; however, they can be distinguished by their unique ID

Carlson Auto Dealers Inc. sells a handmade automobile as its only product. Each automobile is identical; however, they can be distinguished by their unique ID number. At the beginning of 2013, Carlson had three cars in inventory, as follows:

Car ID Cost
203 $ 66,000
207 66,000
210 69,000

During 2013, each of the three autos sold for $96,000. Additional purchases (listed in chronological order) and sales for the year were as follows:

Car ID Cost Selling Price
211 $ 66,000 $ 96,000
212 66,000 99,000
213 67,500 not sold
214 69,000 102,000
215 72,000 106,500
216 73,500 not sold
217 75,000 111,000
218 72,300 112,500
219 78,000 not sold

Required:
1.

Calculate 2013 ending inventory and cost of goods sold assuming the company uses the specific identification inventory method.

ending inventory
cost of good sold

2.

Calculate ending inventory and cost of goods sold assuming FIFO and a periodic inventory system.

ending inventory
cost of good sold

3.

Calculate ending inventory and cost of goods sold assuming LIFO and a periodic inventory system.

ending inventory
cost of good sold

4.

Calculate ending inventory and cost of goods sold assuming the average cost method and a periodic inventory system.

ending inventory
cost of good sold

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Financial Accounting

Authors: Clarence Byrd, Ida Chen

4th Edition

013089611X, 978-0130896117

More Books

Students also viewed these Accounting questions