P$7-2($Algo$)$ Analyzing the Effects of Four Alternative Inventory Methods LO$7-2$

Kirtland Corporation uses a periodic inventory system. At the end of the annual accounting period, December $31,$ the accounting records for the most popular item in inventory showed the following:

Transactions Units Unit Cost

Beginning inventory, January $1350$ $$6\mathrm{.}00$

Transactions during the year:

a$.$ Purchase, January $302502\mathrm{.}90$

b$.$ Purchase, May $14107\mathrm{.}00$

c$.$ Sale $($$$8$ each$)(110)$

d$.$ Sale $($$$8$ each$)(650)$

Required:

a$.$ Compute the amount of goods available for sale.

b$.$ & c$.$ Compute the amount of ending inventory and cost of goods sold at December $31,$ under Average cost, First$-$in$,$ first$-$out, Last$-$in$,$ first$-$out and Specific identification inventory costing methods. For Specific identification, assume that the first sale was selected two$-$fifths from the beginning inventory and three$-$fifths from the purchase of January $30.$ Assume that the second sale was selected from the remainder of the beginning inventory, with the balance from the purchase of May $1.$