P7-2 Analyzing the Effects of Four Alternative Inventory Methods LO7-2

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:

TransactionsUnitsUnit CostBeginning inventory, January 1400$3.00Transactions During the year:a.Purchase, January 303003.40b.Purchase, May 14604.00c.Sale ($5 each)(160)d.Sale ($5 each)(700)

Required:

a.Compute the amount of goods available for sal

6 Safari File Edit View History Bookmarks Window Help \"3 m Eli} Thu 2:41 AM Q g as O O 0 La ezto.mheducaticn.com O 0 1 E? P7-2 Analyzing the Effects of Four Alternative Inventory Methods L07-2 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 1 400 $3.00 Transactions During the year: a. Purchase, January 30 300 3.40 b. Purchase, May 1 460 4.00 c. Sale ($5 each) (160) d. Sale ($5 each) (700) | 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, rst-out, Last-in, rst-out, Specic identication of the inventory costing methods. Specic identication, assuming that the rst sale was selected two-fths from the beginning inventory and three-fths 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. (Do not round intermediate calculations. Round your "Specic Identication" answers to 2 decimal places.)