Reference no: EM131779653
Question - You are provided with the following information for Gobler Inc. Gobler Inc. uses the periodic method of accounting for its inventory transactions.
March 1 Beginning Inventory 1,950 liters at a cost of 62¢ per liter.
March 3 Purchased 2,400 liters at a cost of 65¢ per liter.
March 5 Sold 2,400 liters for $1.00 per liter.
March 10 Purchased 4,000 liters at a cost of 70¢ per liter.
March 20 Purchased 2,450 liters at a cost of 77¢ per liter.
March 30 Sold 5,150 liters for $1.25 per liter.
Required - Calculate the value of ending inventory that would be reported on the balance sheet, under each of the following cost flow assumptions.
(1) Specific identification method assuming:
(i) The March 5 sale consisted of 1,000 liters from the March 1 beginning inventory and 1,400 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: 400 liters from March 1; 550 liters from March 3; 2,800 liters from March 10; 1,400 liters from March 20.
(2) FIFO
(3) LIFO