Problem 8-7 (Static) Various inventory costing methods [LO8-1, 8-4]

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[The following information applies to the questions displayed below.] Carlson 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 2021, Carlson had three cars in inventory, as follows:

Car ID	Cost
203	$	60,000
207		60,000
210		63,000

During 2021, each of the three autos sold for $90,000. Additional purchases (listed in chronological order) and sales for the year were as follows:

Car ID	Cost			Selling Price
211	$	63,000		$	90,000
212		63,000			93,000
213		64,500		not sold
214		66,000			96,000
215		69,000			100,500
216		70,500		not sold
217		72,000			105,000
218		72,300			106,500
219		75,000		not sold

Required: 1. Calculate 2021 ending inventory and cost of goods sold assuming the company uses the specific identification inventory method

	Specific Identification
Ending inventory
Cost of goods sold

2. Calculate ending inventory and cost of goods sold assuming FIFO and a periodic inventory system.

	FIFO Periodic
Ending inventory
Cost of goods sold

3. Calculate ending inventory and cost of goods sold assuming LIFO and a periodic inventory system.

	LIFO Periodic
Ending inventory
Cost of goods sold

4. Calculate ending inventory and cost of goods sold assuming the average cost method and a periodic inventory system.

	Average Cost Method Periodic
Ending inventory
Cost of goods sold