Kirtland Corporation uses a periodic inventory system Al the end of the annual a

Question

Kirtland Corporation uses a periodic inventory system Al the end of the annual accounting peniod, December 31, me accounting r records for the most popular item in inventory showed the ng Beginning inventory, January 1 Transactions during the year a Purchase January 30 b. Purchase May 1 440 $3 00 340 500 4 00 c Sale (35 each d Sale 155 each Required: a. Compute the amount of goods available for sale O Answer is complete but not entirely correct. 300 O b. & e. Compute the amount of ending inventory and cost of goods sold at December 31, under Average cost, First-infrst out, Last-in frst out and Specitic idenication inventory costing methods For Secific Kenntation assume that tre first sa, was se.ected two-nnns som, trebepriing rventory and nreenns torm the purchase or Jawary 30 Assume hr re eond-. from the remainder of the beginning nentory wih the balance from the purchase of May 1. (0o not round intermediate calculations, Round Average Cost and Specthic idenohcation" answer to 2 decimal places ) Average Cost First Ou Ending inventory Cost of gooeds sold

Explanation / Answer

Goods Avilable for Sale a Opening Inventory 440 3                    1,320 Jan-30 Purchase 340 3.8                    1,292 May-01 Purchase 500 4                    2,000 Total Goods Avilable 1280                         3.60                    4,612 Weighted Average Date Description Qty Rate Amt. Opening Inventory 440 3                    1,320 Jan-30 Purchase 340 3.8                    1,292 May-01 Purchase 500 4                    2,000 Total Goods Avilable 1280                         3.60                    4,612 Less: Sales 940                         3.60                    3,387 Cost of Goods Sold 940                    3,387 Ending Inventory 340                    1,225 FIFO Method Date Description Qty Rate Amt. Opening Inventory 440 3                    1,320 Jan-30 Purchase 340 3.8                    1,292 May-01 Purchase 500 4                    2,000 Total Goods Avilable 1280                    4,612 Less: Sales 200 3                       600 240 3                       720 340 3.8                    1,292 160 4                       640 Cost of Goods Sold 940                    3,252 Ending Inventory 340                    1,360 LIFO Method Date Description Qty Rate Amt. Opening Inventory 440 3                    1,320 Jan-30 Purchase 340 3.8                    1,292 May-01 Purchase 500 4                    2,000 Total Goods Avilable 1280                    4,612 Less: Sales 200 4                       800 300 3                       900 340 3.8                    1,292 100 3                       300 Cost of Goods Sold 940                    3,292 Ending Inventory 340                    1,320 Specific Identification Date Description Qty Rate Amt. Opening Inventory 440 3                    1,320 Jan-30 Purchase 340 3.8                    1,292 May-01 Purchase 500 4                    2,000 Total Goods Avilable 1280                    4,612 Less: Sales First Sale 80 3                       240 120 3.8                       456 Second Sale 360 3                    1,080 380 4                    1,520 Cost of Goods Sold 940                    3,296 Ending Inventory 340                    1,316

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