Problem 6-06A a1-a2

You are provided with the following information for Sunland Inc. Sunland Inc. uses the periodic method of accounting for its inventory transactions.

March 1 Beginning inventory 2,000 liters at a cost of 70¢ per liter.

March 3 Purchased 2,500 liters at a cost of 74¢ per liter.

March 5 Sold 2,300 liters for $1.05 per liter.

March 10 Purchased 4,000 liters at a cost of 81¢ per liter.

March 20 Purchased 2,500 liters at a cost of 89¢ per liter.

March 30 Sold 5,200 liters for $1.25 per liter.

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: 450 liters from March 1; 550 liters from March 3; 2,900 liters from March 10; 1,300 liters from March 20.

(2)FIFO

(3)LIFO

Prepare partial income statements for 2020 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: 450 liters from March 1; 550 liters from March 3; 2,900 liters from March 10; 1,300 liters from March 20.

(2)FIFO

(3)LIFO

Drop Down Box Options:

Sales Revenue

Beginning Inventory

Purchases

Cost of Goods Available for Sale

Gross Profit

Ending Inventory

Cost of Goods Sold