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.
  

Date		Activities	Units Acquired at Cost								Units sold at Retail
Jan.	1	Beginning inventory	205	units	@	$	13.00	=	$	2,665
Jan.	10	Sales										165	units	@	$	22.00
Jan.	20	Purchase	140	units	@	$	12.00	=		1,680
Jan.	25	Sales										145	units	@	$	22.00
Jan.	30	Purchase	310	units	@	$	11.50	=		3,565
		Totals	655	units					$	7,910		310	units

rev: 09_15_2017_QC_CS-99723

Exercise 5-5A Periodic: Inventory costing LO P3

Required:

The Company uses a periodic inventory system. For specific identification, ending inventory consists of 345 units, where 310 are from the January 30 purchase, 5 are from the January 20 purchase, and 30 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

Calculate ending inventory

	Specific identification	Weighted average	FIFO	LIFO
Ending inventory	(30*13+5*12+3565) = 4015	7910/655*345 = 4166	(310*11+35*12) = 3985	(205*13+140*12) = 4345