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I need help with this homework problem for my accounting class. Problem 6-6A You are provided with the following information for Gobler Inc. Gobler Inc.
I need help with this homework problem for my accounting class.
Problem 6-6A You are provided with the following information for Gobler Inc. Gobler Inc. uses the periodic method of accounting for its inventory transactions. Marc 1 Beginning inventory 2,000 liters at a cost of 58 per liter. h Marc 3 Purchased 2,400 liters at a cost of 62 per liter. h Marc 5 Sold 2,300 liters for $1.05 per liter. h Marc 10 Purchased 4,150 liters at a cost of 67 per liter. h Marc 20 Purchased 2,550 liters at a cost of 76 per liter. h Marc 30 Sold 5,100 liters for $1.35 per liter. h Your answer is partially correct. Try again. 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: 400 liters from March 1; 550 liters from March 3; 2,800 liters from March 10; 1,350 liters from March 20. (2) FIFO (3) LIFO Ending inventory Specific identification FIFO LIFO $ 2,504.50 $ 2,720 $ 2,175 LINK TO TEXT Your answer is partially correct. Try again. Prepare partial income statements 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: 400 liters from March 1; 550 liters from March 3; 2,800 liters from March 10; 1,350 liters from March 20. (2) FIFO (3) LIFO GOBLER INC. Income Statement (partial) For the Year Ended Decem 31, 2017 ber Sales revenue Specific Identification $ FIFO LIFO $ $ 8,915 8,915 8,915 Beginning inventory 1,200 1,200 1,200 Purchases 6,505 6,505 6,505 Cost of goods available for sale 7,705 7,705 7,705 Ending inventory 2,505 2,720 2,175 Cost of goods sold 5,200 4,985 5,530 Gross profi / (Loss) t $ 3,715 $ 3,930 $ 3,385Step by Step Solution
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