Problem 6-06A a1-a2

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

March		1		Beginning inventory 2,100 liters at a cost of 60 per liter.
March		3		Purchased 2,500 liters at a cost of 62 per liter.
March		5		Sold 2,300 liters for $1.05 per liter.
March		10		Purchased 4,000 liters at a cost of 69 per liter.
March		20		Purchased 2,400 liters at a cost of 77 per liter.
March		30		Sold 5,100 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; 1,200 liters from March 20.
(2)	FIFO
(3)	LIFO

		Ending inventory
Specific identification		$
FIFO		$
LIFO		$

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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; 1,200 liters from March 20.
(2)	FIFO
(3)	LIFO

VAUGHN INC. Income Statement (partial) For the Year Ended December 31, 2020For the Month Ended December 31, 2020December 31, 2020
		Specific Identification		FIFO		LIFO
PurchasesCost of goods available for saleBeginning inventoryGross profit / (Loss)Cost of goods soldEnding inventorySales revenue		$		$		$
Cost of goods available for saleCost of goods soldBeginning inventoryEnding inventoryPurchasesGross profit / (Loss)Sales revenue
Cost of goods available for saleCost of goods soldEnding inventoryGross profit / (Loss)Sales revenueBeginning inventoryPurchases
Cost of goods soldCost of goods available for saleSales revenueEnding inventoryGross profit / (Loss)Beginning inventoryPurchases
Sales revenueBeginning inventoryGross profit / (Loss)PurchasesCost of goods available for saleEnding inventoryCost of goods sold
Cost of goods available for saleEnding inventoryCost of goods soldGross profit / (Loss)Sales revenueBeginning inventoryPurchases
Beginning inventoryEnding inventoryPurchasesCost of goods available for saleCost of goods soldGross profit / (Loss)Sales revenue		$		$		$

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