P$7-2($Algo$)$ Analyzing the Effects of Four Alternative Inventory Methods LO$7-2$

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 $1380$ $$3\mathrm{.}00$

Transactions during the year:

a$.$ Purchase, January $302803\mathrm{.}20$

b$.$ Purchase, May $14404\mathrm{.}00$

c$.$ Sale $($$$5$ each$)(140)$

d$.$ Sale $($$$5$ each$)(680)$

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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