Question

Required information [The following information applies to the questions displayed below.] Laker Company reported the following January purchases and sales data for its only product. Date Activities Units Acquired at Cost Units sold at Retail Jan. 1 Beginning inventory 240 units @ $ 16.50 = $ 3,960 Jan. 10 Sales 190 units @ $ 25.50 Jan. 20 Purchase 170 units @ $ 15.50 = 2,635 Jan. 25 Sales 190 units @ $ 25.50 Jan. 30 Purchase 380 units @ $ 15.00 = 5,700 Totals 790 units $ 12,295 380 units Required: The Company uses a periodic inventory system. For specific identification, ending inventory consists of 410 units, where 380 are from the January 30 purchase, 5 are from the January 20 purchase, and 25 are from beginning inventory. Determine the cost assigned to ending inventory and to cost of goods sold using (a) specific identification, (b) weighted average, (c) FIFO, and (d) LIFO

Answer 1

Specific Identification
Date	Particulars	Units	Cost	Amount	Comments
Jan 01	Beginning Inventory	240.00	16.50	3,960.00
Jan 20	Purchase	170.00	15.50	2,635.00
Jan 30	Purchase	380.00	15.00	5,700.00
	Total	790.00		12,295.00
	COGS	380.00		6,105.00	215*16.50+165*15.50
	Ending Inventory	410.00		6,190.00	380*15+5*15.50+25*16.50
Cost assigned to COGS	6,105.00
Cost assigned to Ending Inventory	6,190.00
Weighted Average
Date	Particulars	Units	Cost	Amount	Comments
Jan 01	Beginning Inventory	240.00	16.50	3,960.00
Jan 20	Purchase	170.00	15.50	2,635.00
Jan 30	Purchase	380.00	15.00	5,700.00
	Total	790.00	15.56	12,295.00
	COGS	380.00	15.56	5,914.05
	Ending Inventory	410.00	15.56	6,380.95
Cost assigned to COGS	5,914.05
Cost assigned to Ending Inventory	6,380.95
FIFO
Date	Particulars	Units	Cost	Amount	Comments
Jan 01	Beginning Inventory	240.00	16.50	3,960.00
Jan 20	Purchase	170.00	15.50	2,635.00
Jan 30	Purchase	380.00	15.00	5,700.00
	Total	790.00		12,295.00
	COGS	380.00		6,130.00	240*16.50+140*15.50
	Ending Inventory	410.00		6,165.00	30*15.50+380*15
Cost assigned to COGS	6,130.00
Cost assigned to Ending Inventory	6,165.00
LIFO
Date	Particulars	Units	Cost	Amount	Comments
Jan 01	Beginning Inventory	240.00	16.50	3,960.00
Jan 20	Purchase	170.00	15.50	2,635.00
Jan 30	Purchase	380.00	15.00	5,700.00
	Total	790.00		12,295.00
	COGS	380.00		5,700.00	380*15
	Ending Inventory	410.00		6,595.00	170*15.50+240*16.50
Cost assigned to COGS	5,700.00
Cost assigned to Ending Inventory	6,595.00