Reference no: EM132947292

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

March1 Beginning inventory 2,200 liters at a cost of 60¢ per liter.

March3 Purchased 2,500 liters at a cost of 70¢ per liter.

March 5 Sold 2,300 liters for $1.05 per liter.

March10 Purchased 4,000 liters at a cost of 77¢ per liter.

March 20 Purchased 2,400 liters at a cost of 85¢ per liter.

March 30 Sold 5,000 liters for $1.25 per liter.

Required -

1. Calculate the value of ending inventory that would be reported on the balance sheet, under each of the following cost flow assumptions.

(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; 1,100 liters from March 20.

(2) FIFO

(3) LIFO