Question

Carlson Auto Dealers Inc.sells a handmade automobile as its only product. Each automobile isidentical; however, they can be distinguished by their unique IDnumber. At the beginning of 2013, Carlson had three cars ininventory, as follows:

 

  CarID

Cost

    203

$

96,000

 

    207

 

96,000

 

    210

 

99,000

 


       

 

     During 2013, each of the threeautos sold for $126,000. Additional purchases (listed inchronological order) and sales for the year were asfollows:

 

  CarID

Cost

Selling Price

    211

$

96,000

 

$

126,000

 

    212

 

96,000

 

 

129,000

 

    213

 

97,500

 

 

not sold

 

    214

 

99,000

 

 

132,000

 

    215

 

102,000

 

 

136,500

 

    216

 

100,500

 

 

not sold

 

    217

 

105,000

 

 

141,000

 

    218

 

102,300

 

 

142,500

 

    219

 

108,000

 

 

not sold

 

             

 

Required:

1.

Calculate 2013 endinginventory and cost of goods sold assuming the company uses thespecific identification inventory method.

   

 

2.

Calculate ending inventoryand cost of goods sold assuming FIFO and a periodic inventorysystem.

 

3.

Calculate ending inventoryand cost of goods sold assuming LIFO and a periodic inventorysystem.

 

4.

Calculate ending inventoryand cost of goods sold assuming the average cost method and aperiodic inventory system.