Problem 6-6A (Part Level Submission) You are provided with the following informa

Question

Problem 6-6A (Part Level Submission) You are provided with the following information for Barton Inc. Barton Inc. uses the periodic method of accounting for its inventory transactions. March 1 Beginning inventory 2,025 liters at a cost of 59¢ per liter. March 3 Purchased 2,405 liters at a cost of 64¢ per liter. March 5 Sold 2,295 liters for $1.00 per liter. March 10 Purchased 4,165 liters at a cost of 71¢ per liter. March 20 Purchased 2,585 liters at a cost of 79¢ per liter. March 30 Sold 5,275 liters for $1.30 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. 125.25.)

(1) Specific identification method assuming: (i) The March 5 sale consisted of 1,000 liters from the March 1 beginning inventory and 1,295 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: 480 liters from March 1; 595 liters from March 3; 2,900 liters from March 10; 1,300 liters from March 20. (2) FIFO (3) LIFO

Explanation / Answer

For the Given question Calculation Can be as follows:- Specific identification Method Date in Mar (1) Qty (2) Rate(3) (in $) Total Cost(Qty * Rate) (2*3) Issue towards First Sale (on 5th) Issue towards II Sale (on 30 the) Closing Stock to be reported at balance sheet Closing stock Value to be reported at balance sheet 1 2025 0.59 1194.75 -1000 -480 545 321.55 3 2405 0.64 1539.2 -1295 -595 515 329.6 10 4165 0.71 2957.15 0 -2900 1265 898.15 20 2585 0.79 2042.15 0 -1300 1285 1015.15 -2295 -5275 3610 2564.45 For the Given question Calculation Can be as follows:- FIFO : Stock has to be issued from the first purchased inventory until exhausts. Date in Mar (1) Qty (2) Rate(3) (in $) Total Cost(Qty * Rate) (2*3) Issue towards First Sale (on 5th) 2295 units Issue towards II Sale (on 30 the) 5275 units Closing Stock to be reported at balance sheet Closing stock Value to be reported at balance sheet 1 2025 0.59 1194.75 -2025 0 0 0 3 2405 0.64 1539.2 -270 -2135 0 0 10 4165 0.71 2957.15 0 -3140 1025 727.75 20 2585 0.79 2042.15 0 0 2585 2042.15 -2295 -5275 3610 2769.9 For the Given question Calculation Can be as follows:- LIFO : Stock has to be issued from the last purchased inventory until exhausts. Date in Mar (1) Qty (2) Rate(3) (in $) Total Cost(Qty * Rate) (2*3) Issue towards First Sale (on 5th) 2295 units Issue towards II Sale (on 30 the) 5275 units Closing Stock to be reported at balance sheet Closing stock Value to be reported at balance sheet 1 2025 0.59 1194.75 0 0 2025 1194.75 3 2405 0.64 1539.2 -2295 0 110 70.4 10 4165 0.71 2957.15 0 -2690 1475 1047.25 20 2585 0.79 2042.15 0 -2585 0 0 -2295 -5275 3610 2312.4

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