Question

Laker Company reported the following January purchases and sales data for its only product. Date Activities...

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 185 units @ $ 11.00 = $ 2,035
Jan. 10 Sales 145 units @ $ 20.00
Jan. 20 Purchase 100 units @ $ 10.00 = 1,000
Jan. 25 Sales 125 units @ $ 20.00
Jan. 30 Purchase 270 units @ $ 9.50 = 2,565
Totals 555 units $ 5,600 270 units


The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 285 units, where 270 are from the January 30 purchase, 5 are from the January 20 purchase, and 10 are from beginning inventory.

Weighted Average - Perpetual:
Goods Purchased Cost of Goods Sold Inventory Balance
Date # of units Cost per unit # of units sold Cost per unit Cost of Goods Sold # of units Cost per unit Inventory Balance
January 1 185 @ $11.00 = $2,035.00
January 10 145 @ $11.00 = $1,595.00 40 @
January 20 100 @ $10.00 40 @
100 @ $10.00 = 1,000.00
Average cost 140 @ $1,000.00
January 25 125 @
January 30 270 @ $9.50
270 @ $9.50 = 2,565.00
Totals $1,595.00 270 @
0 0
Add a comment Improve this question Transcribed image text
Answer #1
Weighted Average - Perpetual:
Goods Purchased Cost of Goods Sold Inventory Balance
Date # of units Cost per unit # of units sold Cost per unit Cost of Goods Sold # of units Cost per unit Inventory Balance
January 1 185 @ $11.00 = $2,035.00
January 10 145 @ $11.00 = $1,595.00 40 @ 11 440
January 20 100 @ $10.00 40 @ 11 440
100 @ $10.00 = 1,000.00
Average cost 140 @ 10.29 1440
January 25 125 @ 10.29 1286 15 10.29 154
January 30 270 @ $9.50 15 10.29 154
270 @ $9.50 = 2,565.00
Totals 2881 270 @ 10.07 2719
Add a comment
Know the answer?
Add Answer to:
Laker Company reported the following January purchases and sales data for its only product. Date Activities...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT