Question
You are provided with the following information for Novak Corp. Novak Corp. uses the periodic system of accounting for its inventory transactions. March 1 Beginning
You are provided with the following information for Novak Corp. Novak Corp. uses the periodic system of accounting for its inventory transactions.
| March | 1 | Beginning inventory 1,930 liters at a cost of 60 per liter. | ||
| March | 3 | Purchased 2,450 liters at a cost of 65 per liter. | ||
| March | 5 | Sold 2,395 liters for $1.05 per liter. | ||
| March | 10 | Purchased 4,190 liters at a cost of 72 per liter. | ||
| March | 20 | Purchased 2,510 liters at a cost of 80 per liter. | ||
| March | 30 | Sold 5,265 liters for $1.35 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. 125.25.)
| (1) | Specific identification method assuming: | ||
| (i) | The March 5 sale consisted of 1,000 liters from the March 1 beginning inventory and 1,395 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: 465 liters from March 1; 565 liters from March 3; 2,900 liters from March 10; 1,335 liters from March 20. | ||
| (2) | FIFO | ||
| (3) | LIFO | ||
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Accounting Theory Contemporary Accounting Issues
Authors: Thomas G. Evans
1st Edition
0324107846, 9780324107845
