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Kirtland Corporation uses a periodic inventory system. At the end of the annual accounting period,...

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Accounting

Kirtland Corporation uses a periodic inventory system. At the end of the annual accounting period, December 31, the accounting records for the most popular item in inventory showed the following:

Transactions Units Unit Cost
Beginning inventory, January 1 300 $4.00
Transactions during the year:
a. Purchase, January 30 200 2.40
b. Purchase, May 1 360 5.00
c. Sale ($6 each) (60)
d. Sale ($6 each) (600)

Note: You may find it helpful to review the videos posted to Connect titled "Chapter 7 Guided Help Video - LIFO & FIFO" and "Chapter 7 Video - Calculating Average Cost."

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 Specific identification, assume that the first sale was selected two-fifths from the beginning inventory and three-fifths from the purchase of January 30. Assume that the second sale was selected from the remainder of the beginning inventory, with the balance from the purchase of May 1.

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