Problem 6-06A a1-a2

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

March		1		Beginning inventory 2,000 liters at a cost of 90 per liter.
March		3		Purchased 2,500 liters at a cost of 92 per liter.
March		5		Sold 2,300 liters for $1.05 per liter.
March		10		Purchased 4,000 liters at a cost of 99 per liter.
March		20		Purchased 2,400 liters at a cost of 107 per liter.
March		30		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

		Ending inventory
Specific identification		$
FIFO		$
LIFO		$

Prepare partial income statements for 2020 through gross profit, under each of the following cost flow assumptions. (Round answers to 2 decimal places, e.g. 125.25.)

(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

Sales revenueGross profit / (Loss)Ending inventoryCost of goods soldCost of goods available for saleBeginning inventoryPurchases		Specific Identification		FIFO		LIFO
Sales revenueGross profit / (Loss)Ending inventoryCost of goods soldCost of goods available for saleBeginning inventoryPurchases		$		$		$
Sales revenueGross profit / (Loss)Ending inventoryCost of goods soldCost of goods available for saleBeginning inventoryPurchases
Gross profit / (Loss)PurchasesCost of goods soldBeginning inventorySales revenueCost of goods available for saleEnding inventory
Cost of goods soldSales revenueBeginning inventoryEnding inventoryPurchasesCost of goods available for saleGross profit / (Loss)
Ending inventoryPurchasesSales revenueCost of goods available for saleCost of goods soldGross profit / (Loss)Beginning inventory
PurchasesBeginning inventoryCost of goods available for saleCost of goods soldGross profit / (Loss)Sales revenueEnding inventory
Beginning inventoryCost of goods available for saleEnding inventoryPurchasesSales revenueCost of goods soldGross profit / (Loss)		$		$		$

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