Question

[The following information applies to the questions displayed below.] Laker Company reported the following January purchases and sales data for its only product. Units Acquired at Cost 240 units @ $16.50 = $ 3,960 Units sold at Retail 190 units @ $25.50 Date Activities Jan. 1 Beginning inventory Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase Totals 170 units @ $15.50 = 2,635 190 units @ $25.50 $15.00 = 380 units @ 790 units 5,700 $12, 295 380 units The Company uses a perpetual 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. equired: Complete the table to determine the cost assigned to ending inventory and cost of goods sold using specific identification. -Determine the cost assigned to ending inventory and to cost of goods sold using weighted average. -Determine the cost assigned to ending inventory and to cost of goods sold using FIFO. -Determine the cost assigned to ending inventory and to cost of goods sold using LIFO.

Answer 1

Summary Q.No. Method Cost of goods Sold cost of ending inventory $ 6,190 $ 6,172 $ 6,165 $ 6,195 $ $ Specific identification Weighted average FIFO LIFO wN 6,105 6,123 6,130 6,100 $

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 Jan-01 Jan-20 Jan-30 Beginnig Inventory Purchase Purchase Total 240 170 380 790 16.50 15.50 15.00 215 165 0 380 $ $ $ 16.50 15.50 15.00 $ $ $ $ 3,548 2,558 - 6,105 25 5 380 410 $ $ $ 16.50 15.50 15.00 $ $ $ $ 413 78 5,700 6,190 Ending units Working Notes: No.of units Sold from Particulars Beginning inventory Purchases - Jan 20 Purchases - Jan 30 Total Total units 240 170 380 5 units sold 215 165 0 380 380 410

2) Weighted Average (Perpetual) : Goods Purchased Cost of Goods Sold # of Units Date Cost per # of Units Cost per Unit Sold Unit Inventory Balance # of Cost Inventory Units per Unit Balance Sold Cost of Goods Sold Jan-01 240 S 16.50 S 3,960 190 S 16.50 S 3,135 50 Jan-10 Jan-20 | 170 S 15.50 50 170 220 30 S 16.50S S 16.50S S 15.50 S S 15.73S S 15.73S 825 825 2,635 3,460 472 Jan-25 190 S 15.73 S 2,988 Jan-30 380 S 15.00 30 380 410 S 15.73S S 15.00 S S 15.05S 472 5,700 6,172 Totals S 6,123 Cost assigned to ending inventory Cost of Goods Sold = $ 3135+ $ 2988 $ $ 6,172 6,123 Activate Win Go to Por settings

3) Cost assigned to ending inventory ( $ 465 + $ 5700) Cost of Goods Sold = $ 3135+ $ 825 + $ 2170 $ $ 6,165 6,130 Perpectual FIFO Goods Purchased Cost of Goods Sold Date # of Units Cost per # of Units Cost per | Unit Sold 1 Unit Cost of Goods Sold Inventry Balance # of Cost Inventory Units Sold per Unit Balance 240 S 16.50 S 3,960 Jan-01 Jan-10 190 S 16.50 S 3,135 Jan-20170S 15.50 50 50 170 S 16.50 S S 16.50S S 15.50 S 825 825 2,635 Jan-25 140 S S 16.50S 15.50 S 825 2,170 Jan-30 380 S 15.00 30 30 380 S 15.50 S S 15.50 S S 15.00 S S 465 465 5,700 6,165 Total S 6,130

4) Perpectual LIFO Goods Purchased Cost of Goods Sold Date # of Units Cost per # of Units Cost per Cost per | Unit Sold Unit Cost of Goods Sold Inventry Balance # of Cost Inventory Units per Unit Balance Sold 240 S 16.50 S 3,960 50 S 16.50S 825 Jan-01 Jan-10 190 S 16.50 S 3,135 Jan-20 170 S 15.50 50 170 S 16.50S S 15.50 S 825 2,635 Jan-25 170 20 S 15.50 S S 16.50S 2,635 330 30 S 16.50 S 495 Jan-30 380S 15.00 30 380 $ 16.50 S 15.00 S S S 495 5,700 6,195 Total S 6,100 Cost assigned to ending inventory ($ 495 + $5700) Cost of Goods Sold = $ 3135 + $ 2635+ $ 330 = $ $ 6,195 6,100 Activate