P8-7 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 2011, Carlson had three cars in inventory, as
follows:
During 2011, each of
the three autos sold for $90,000. Additional purchases
(listed in chronological
order) and sales for the year were as follows:
Required:
1. Calculate 2011
ending inventory and cost of goods sold assuming the company
uses the specific
identification inventory method.
2. Calculate ending
inventory and cost of goods sold assuming FIFO and a periodic
inventory
system.
3. Calculate ending
inventory and cost of goods sold assuming LIFO and a periodic
inventory
system.
4. Calculate ending
inventory and cost of goods sold assuming the average cost
method and a periodic
inventory system.
P8-7 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 2011, Carlson had three cars in inventory, as
follows:
During 2011, each of
the three autos sold for $90,000. Additional purchases
(listed in chronological
order) and sales for the year were as follows:
Required:
1. Calculate 2011
ending inventory and cost of goods sold assuming the company
uses the specific
identification inventory method.
2. Calculate ending
inventory and cost of goods sold assuming FIFO and a periodic
inventory
system.
3. Calculate ending
inventory and cost of goods sold assuming LIFO and a periodic
inventory
system.
4. Calculate ending
inventory and cost of goods sold assuming the average cost
method and a periodic
inventory system.
P8-7 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 2011, Carlson had three cars in inventory, as
follows:
During 2011, each of
the three autos sold for $90,000. Additional purchases
(listed in chronological
order) and sales for the year were as follows:
Required:
1. Calculate 2011
ending inventory and cost of goods sold assuming the company
uses the specific
identification inventory method.
2. Calculate ending
inventory and cost of goods sold assuming FIFO and a periodic
inventory
system.
3. Calculate ending
inventory and cost of goods sold assuming LIFO and a periodic
inventory
system.
4. Calculate ending
inventory and cost of goods sold assuming the average cost
method and a periodic
inventory system.
P8-7 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 2011, Carlson had three cars in inventory, as
follows:
During 2011, each of
the three autos sold for $90,000. Additional purchases
(listed in chronological
order) and sales for the year were as follows:
Required:
1. Calculate 2011
ending inventory and cost of goods sold assuming the company
uses the specific
identification inventory method.
2. Calculate ending
inventory and cost of goods sold assuming FIFO and a periodic
inventory
system.
3. Calculate ending
inventory and cost of goods sold assuming LIFO and a periodic
inventory
system.
4. Calculate ending
inventory and cost of goods sold assuming the average cost
method and a periodic
inventory system.
