Reference no: EM13988646

P8-7 Carlson Auto Dealers Inc. sells a handmade automobile as its only product. Each automobile is identical; however, they can be distinguished by their unique ID number. At the beginning of 2011, Carlson had three cars in inventory, as follows:

During 2011, each of the three autos sold for $90,000. Additional purchases (listed in chronological order) and sales for the year were as follows:

Required:

1. Calculate 2011 ending inventory and cost of goods sold assuming the company uses the specific identification inventory method.

2. Calculate ending inventory and cost of goods sold assuming FIFO and a periodic inventory system.

3. Calculate ending inventory and cost of goods sold assuming LIFO and a periodic inventory system.

4. Calculate ending inventory and cost of goods sold assuming the average cost method and a periodic inventory system.