Question

Required Information Use the following information for the Exercises below. [The following information applies to the questions displayed below) Laker Company reported the following January purchases and sales data for its only product Unit Acou 180 units s t sle.se $1,98 110 units 9,50 15 Date Activities Jan. 1 Beginning inventory Jan. 1e Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase Totals 15195 The Company uses a perpetual Inventory system For specific identification, ending Inventory consists of 280 units, where 260 are from the January 30 purchase. 5 are from the January 20 purchase, and 15 are from beginning inventory Exercise 6-3 Perpetual: Inventory costing methods LO P1 Required: 1. Complete the table to determine the cost assigned to ending inventory and cost of goods told using specific dentification 2. Determine the cost assigned to ending inventory and to cost of goods sold using we ghted average 3. Determine the cost assigned to ending inventory and to cost of goods sol 4. Determine the cost assgned to ending inventory and to cost of goods Complete this question by entering your answ ers in the tabs below.

Answer 1

Summary Q.No. Method Cost of goods Sold Specific identification Weighted average FIFO LIFO cost of ending inventory $ 2,545 $ 2,535 $ 2,530 $ 2,550 $ $ $ $ 2,730 2,740 2,745 2,725

Specific identification inventory method Avalable for sale Cost of Goods Sold Ending Inventory Purchase Date Activity Units Unit Cost Units Sold Unit Cost COGS Ending Inventory Units Cost per Unit Ending Inventory cost 180 Jan-01 Jan-20 Jan-30 110 $ Beginnig Inventory Purchase Purchase Total 10.50 9.50 9.00 165 105 0 270 $ $ $ 10.50 9.50 9.00 $ $ $ $ 1,733 998 .. 2,730 15 5 260 280 $ $ $ 10.50 9.50 9.00 $ $ $ $ 158 48 2,340 2,545 260 550 Total units Working Notes: No.of units Sold from Particulars Beginning inventory Purchases - Jan 20 Purchases - Jan 30 Total 110 260 Ending units 15 5 260 280 units sold 165 105 O 270 550

Weighted Average (Perpetual): Goods Purchased Cost of Goods Sold # of Units Date Cost per # of Units Unit Sold Cost per Unit Inventory Balance # of Units Cost Inventory Saper Unit Balance Cost of Goods Sold Jan-01 180 S 10.50S 1,890 Jan-10 140 S 10.50 S 1,470 Jan-20 110 S 9.50 40 40 110 150 20 S 10.50 S S 10.50 S S 9.50 S S 9.77S S 9.77S 420 420 1,045 1,465 195 Jan-25 130 S 9.77S 1,270 Jan-30 260 S 9.00 20 260 280 S 9.77S S 9.00 S S 9.05 S 195 2,340 2,535 Totals S 2,740 Cost assigned to ending inventory Cost of Goods Sold = $ 1470 + $ 1270 $ $ 2,535 2,740

Cost assigned to ending inventory ( $ 190 + $ 2340) Cost of Goods Sold = $ 1470 +420+855 $ $ 2,530 2,745 Perpectual FIFO Goods Purchased Cost of Goods Sold Date # of Units Cost per| # of Units Unit Sold Cost per Unit Cost of Goods Sold Inventry Balance # of | Cost Inventory Units Sold per Unit Balance 180 S 10.50 S 1,890 Jan-01 Jan-10 140 S 10.50S 1,470 40 Jan-20 110 S 9.50 40 S 10.50 S 10.50 S 9.50 S S S 420 420 1,045 110 Jan-25 S 10.50S S 9.50 S 420 855 90 Jan-30 260 S 9.00 20 20 260 S 9.50 S S 9.50S S 9.00 S S 190 190 2,340 2,530 Total $ 2,745

Perpectual LIFO Goods Purchased Perpetual Goods Purchased t of Goods Sold Cost of Goods Sold Date # of Units Cost per| # of Units Unit Sold #of Cost per Unit 1 Cost of Goods Sold Inventry Balance # of Cost Inventory Units Sold per Unit Balance 180 S 10.50S 1,890 40 S 10.50 S 420 costit Jan-01 Jan-10 140 S 10.50S 1,470 Jan-20 110 S 9.50 40 110 S 10.50 S 9.50 S S 420 1,045 Jan-25 110 20 S 9.50S S 10.50S 1,045 210 20 S 10.50S 210 Jan-30 260 S 9.00 20 260 S 10.50S S 9.00 S $ 210 2,340 2,550 Total S 2,725 Cost assigned to ending inventory ( $ 210+ $ 2340) Cost of Goods Sold = $ 1470+1045+210 = $ $ 2,550 2,725