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 175 units $10.00 - $1.750 Units sold at Retail 135 units $19.00 Date Activities Jan. 1 Beginning inventory Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase Totals 140 units $19.00 130 units @ $ 9.00 - 250 units @ $ 8.50 - 555 units 1,170 3,125 $5,845 275 units The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 280 units, where 250 are from the January 30 purchase, 5 are from the January 20 purchase, and 25 are from beginning inventory. 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. Complete this question by entering your answers in the tabs below.

Answer 1

Solutions:

W Purchase Date Computation of endinginventory and cost of goods sold under Specific Identification Available for sale Cost of goods sold Ending Inventory Ending Ending Activity Units Unit Cost Units sold unit cost COGS InventoryUn Cost per unit Inventory its Cost Beginning Inventory 175 $10.00 150 $10.00 $1,500.00 25 $10.00 $250.00 Purchase 130 $9.00 125 $9.00 $1,125.00 5 $9.00 $45.00 Purchase 250 $8.50 0 $8.50 $0.00 250 $8.50 $2,125.00 555 275 $2,625.00 280 $2,420.00 Jan1 Jan 20 Jan 30 17 et607 Sheet142 (5) Sheet146 (10) Sheet499 (2) Sheet157 (17)

E F G H I J K L M N Date Units Cost per Computation of ending inventory and cost of Goods sold under FIFO (Perpetual) Goods Purchased Cost of goods sold Inventory Balance Units Cost per COGS Units Cost per Inventory Balance unit unit unit 175 $10.00 $1,750.00 135 $10.00 $1,350.00 40 $10.00 $400.00 130 $9.00 40 $10.00 $400.00 130 $9.000 $1,170.00 1-Jan 10-Jan 20-Jan 25-Jan 30 $9.00 $270.00 40 1001 $10.00 $9.00 $400.00 $900.00 30-Jan 250 $8.50 30 250 $9.00 $8.50 $270.00 $2,125.00 Total 275 $2,650.00 280 $2,395.00 Date Units Computation of ending inventory and Cost of Goods sold under LIFO (Perpetual) Goods Purchased Cost of goods sold Inventory Balance Units Cost per Units Cost per COGS Cost per Inventory Balance Lunit unit unit $10.00 $1,750.00 135 $10.000 $1,350.00 $10.00 $400.00 130 $9.00 $10.00 $400.00 $9.00 $1,170.00 1-Jan 10-Jan 20-Jan 175 40 40 25-Jan 30 $10.00 $300.00 130 10 $9.00 $10.00 $1,170.00 $100.00 30-Jan 250 $8.50 $10.00 $8.50 $300.00 $2,125.00 250 Total 275 $2,620.00 280 $2,425.00 Date Units Cost per unit Jan 10 Jan 20 Computation of ending inventory and COGS under Weighted Average Cost (Perpetual) Goods Purchased Cost of Goods sold Inventory Balance Cost per Units COGS Units Cost per Inventory Balance unit unit 175 $10.00 $1,750 135 $10.00 $1,350 $10.00 $400 $9.00 $10.00 $400 $9.00 $1,170 $9.24 $1,570 140 $9.24 $1,294 $9.21 $276 250 $8.50 $9.21 $276 250 $8.50 $2,125 S8.581 $2,401 Average Cost Jan 25 Jan 30 Total 275 $2,644 280 $8.58) 68 et607 Sheet142 (5) Sheet146 (10) Sheet499 (2) Sheet157 (17)