Reference no: EM132368000
Question
You are provided with the following information for Sheridan Inc. Sheridan Inc. uses the periodic method of accounting for its inventory transactions.
March1 Beginning inventory 2,100 liters at a cost of 88¢ per liter.
March3 Purchased 2,500 liters at a cost of 92¢ per liter.
March5Sold 2,300 liters for $1.05 per liter.
March10 Purchased 4,000 liters at a cost of 99¢ per liter.
March20 Purchased 2,200 liters at a cost of 107¢ per liter.
March30 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