Question

system. At the end of the annuai accounting period, December 31, the accounting records for the most popular item in inventory showed the following $5.00 Beginning inventory, January 1 Transactions during the yoar a Purchase, January 30 b. Purchase, May 1 C. Sale ($7 each) d Sale ($7 each) 4 00 6.00 520 1220 (760) 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 assume that the first sale was selected two-fifths from the beginning inventory and three-fifths from the purchase of Ja ance from the purchase of May 1. (Do not round intermediate calculations. Round "Average Cost and Specific Identification" answers to 2 decimal places.) First-n, Last-in, Specific First-Out First-Out Identification Ending inventory Cost of goods sold

Answer 1

a)
Cost of goods available for sale	$            6,860
Explanation
	Units	Rate	Amount
Beginning inventory	460	$          5.00	$        2,300
Purchases	360	$          4.00	$        1,440
Purchases	520	$          6.00	$        3,120
Cost of goods available for sale	1340	$          5.12	$        6,860
b)	Average cost	FIFO	LIFO	Specific
Ending inventory	$      1,842.99	$        2,160	$        1,800	$ 1,704.00
Cost of goods sold	$      5,017.01	$        4,700	$        5,060	$ 5,156.00
Specific identification
	First sales	Second sales	Total	Units available	Balance left	Rate	Ending inventory
Beginning	88	372	460	460	0	$                           5	$             -
Purchase, Jan 30	132		132	360	228	$                           4	$         912
Purchase, May 1		388	388	520	132	$                           6	$         792
							$      1,704

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