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

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Accounting

Kirtland Corporation uses a periodic inventory system. At theend of the annual accounting period, December 31, the accountingrecords for the most popular item in inventory showed thefollowing:
Transactions Units Unit
Cost Beginning inventory, January 1 350 $6.00 Transactionsduring the year:
a. Purchase, January 30 250 $ 2.90
b. Purchase, May 1 410 $7.00
c. Sale ($8 each) (110)
d. Sale ($8 each) (650)
Required: a. Compute the amount of goods available for sale. b.& c. Compute the amount of ending inventory and cost of goodssold at December 31 Specific identification inventory costingmethods.
For Specific identification, assume that the first sale wasselected two-fifths from the beginning inventory and three-fifthsfrom the purchase of January 30. Assume that the second sale wasselected from the remainder of the beginning inventory, with thebalance from the purchase of May 1. (Do not round intermediatecalculations. Round "Average Cost and Specific Identification"answers to 2 decimal places.
I need help computing the Specific Identification, please showall details as previous examples are confusing - Thanks

Answer & Explanation Solved by verified expert

3.6 Ratings (631 Votes)

Units Unit cost Total 1Jan 350 6 2100 20Jan 250 29 725 1May 410 7 2870 Total 1010 5695 Amount of goods available for sale 5695 First sale From beginning inventory 11052 See Answer

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Kirtland Corporation uses a periodic inventory system. At theend of the annual accounting period, December 31, the accountingrecords for the most popular item in inventory showed thefollowing:Transactions Units UnitCost Beginning inventory, January 1 350 $6.00 Transactionsduring the year:a. Purchase, January 30 250 $ 2.90b. Purchase, May 1 410 $7.00c. Sale ($8 each) (110)d. Sale ($8 each) (650)Required: a. Compute the amount of goods available for sale. b.& c. Compute the amount of ending inventory and cost of goodssold at December 31 Specific identification inventory costingmethods.For Specific identification, assume that the first sale wasselected two-fifths from the beginning inventory and three-fifthsfrom the purchase of January 30. Assume that the second sale wasselected from the remainder of the beginning inventory, with thebalance from the purchase of May 1. (Do not round intermediatecalculations. Round "Average Cost and Specific Identification"answers to 2 decimal places.I need help computing the Specific Identification, please showall details as previous examples are confusing - Thanks