Reference no: EM132368000

Question

You are provided with the following information for Sheridan Inc. Sheridan Inc. uses the periodic method of accounting for its inventory transactions.

March1  Beginning inventory 2,100 liters at a cost of 88¢ per liter.

March3  Purchased 2,500 liters at a cost of 92¢ per liter.

March5Sold 2,300 liters for $1.05 per liter.

March10  Purchased 4,000 liters at a cost of 99¢ per liter.

March20  Purchased 2,200 liters at a cost of 107¢ per liter.

March30   Sold 5,200 liters for $1.25 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. 125.50.)

(1)Specific identification method assuming: (i)The March 5 sale consisted of 1,000 liters from the March 1 beginning inventory and 1,300 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: 450 liters from March 1; 550 liters from March 3; 2,900 liters from March 10; 1,300 liters from March 20.

(2)FIFO

(3)LIFO