Auto Dealers Inc. sells a handmade automobile as its only product. Each automobile is identical; however, they
Question:
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 2024, Auto Dealers had three cars in inventory, as follows:
During 2024, 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 2024 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.
Step by Step Answer: