Problem: 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 bginning of 2011, Carlson had three cars in inventory, as follows:
Car ID Cost
203 $60,000
207 $60,000
210 $63,000
During 2011, each of the three autos sold for $90,000. Additional purchases (listed in chronological order) and sales for the year 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 70,000 not sold
217 72,000 105,000
218 72,300 106,500
219 75,000 not sold
Q1. Calculate 2011 ending inventory and cost of goods sold assuming the company uses the specific identification inventory method.
Q2. Calculate ending inventory and cost of goods sold assuming FIFO and a periodic inventory system.
Q3. Calculate ending inventory and cost of goods sold assuming LIFO and a periodic inventory system.
Q4. Calculate ending inventory and cost of goods sold assuming the average cost method and a periodic inventory system.