Question

Required information Use the following information for the Exercises below [The following information applies to the questions displayed below.j Laker Company reported the following January purchases and sales data for its only product. Activities Units Acquired at Cost Date Jan. 1 Beginning inventory 215 units $14.00$3,010 Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30Purchase Units sold at Retail 165 units 23.00 190 units $23.00 160 units $13.00 2,080 330 unitse $12.504,125 705 units Totals $9,215 355 units The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 350 units, where 330 are from the January 30 purchase, 5 are from the January 20 purchase, and 15 are from beginning inventory Exercise 5-3 Perpetual: Inventory costing methods LO P1 Required: 1. Complete the table to determine the cost assigned to ending inventory and cost of goods sold using specific identification 2. Determine the cost assigned to ending inventory and to cost of goods sold using weighted average 3. Determine the cost assigned to ending inventory and to cost of goods sold using FIFO 4. Determine the cost assigned to ending inventory and to cost of goods sold using LIFO

Answer 1

Solution 1:

Computation of ending inventory and cost of goods sold under Specific Identification
Purchase Date	Available for sale			Cost of goods sold			Ending Inventory
	Activity	Units	Unit Cost	Units sold	unit cost	COGS	Ending Inventory Units	Cost per unit	Ending Inventory Cost
Jan 1	Beginning Inventory	215	$14.00	200	$14.00	$2,800.00	15	$14.00	$210.00
Jan 20	Purchase	160	$13.00	155	$13.00	$2,015.00	5	$13.00	$65.00
Jan 30	Purchase	330	$12.50	0	$12.50	$0.00	330	$12.50	$4,125.00
		705		355		$4,815.00	350		$4,400.00

Solution 2:

Computation of ending inventory and COGS under Weighted Average Cost (Perpetual)
Date	Goods Purchased		Cost of Goods sold			Inventory Balance
	Units	Cost per unit	Units	Cost per unit	COGS	Units	Cost per unit	Inventory Balance
Jan 1						215	$14.00	$3,010.00
Jan 10			165	$14.00	$2,310.00	50	$14.00	$700.00
Jan 20	160	$13.00				50	$14.00	$700.00
						160	$13.00	$2,080.00
Average Cost						210	$13.24	$2,780.00
Jan 25			190	$13.24	$2,515.60	20	$13.24	$264.80
Jan 30	330	$12.50				20	$13.24	$264.80
						330	$12.50	$4,125.00
Total			355		$4,825.60	350	$12.54	$4,389.80

Solution 3:

Computation of ending inventory and Cost of Goods sold under FIFO (Perpetual)
Date	Goods Purchased		Cost of goods sold			Inventory Balance
	Units	Cost per unit	Units	Cost per unit	COGS	Units	Cost per unit	Inventory Balance
1-Jan						215	$14.00	$3,010.00
10-Jan			165	$14.00	$2,310.00	50	$14.00	$700.00
20-Jan	160	$13.00				50	$14.00	$700.00
						160	$13.00	$2,080.00
25-Jan			50	$14.00	$700.00	20	$13.00	$260.00
			140	$13.00	$1,820.00
30-Jan	330	$12.50				20	$13.00	$260.00
						330	$12.50	$4,125.00
Total			355		$4,830.00	350		$4,385.00

Solution 4:

Computation of ending inventory and Cost of Goods sold under LIFO (Perpetual)
Date	Goods Purchased		Cost of goods sold			Inventory Balance
	Units	Cost per unit	Units	Cost per unit	COGS	Units	Cost per unit	Inventory Balance
1-Jan						215	$14.00	$3,010.00
10-Jan			165	$14.00	$2,310.00	50	$14.00	$700.00
20-Jan	160	$13.00				50	$14.00	$700.00
						160	$13.00	$2,080.00
25-Jan			160	$13.00	$2,080.00	20	$14.00	$280.00
			30	$14.00	$420.00
30-Jan	330	$12.50				20	$14.00	$280.00
						330	$12.50	$4,125.00
Total			355		$4,810.00	350		$4,405.00