Question

Required information [The following information applies to the questions displayed below.) Laker Company reported the following January purchases and sales data for its only product. Units sold at Retail Units Acquired at Cost 200 unitse $12.50 - $2,500 Date Activities Jan. 1 Beginning inventory Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase Totals 130 units@ $11.50 - 1,495 160 units @ $21.50 140 units $21.50 Book 300 units@ $11.00 - 630 units 3,300 $7,295 300 units Print Terences The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 330 units, where 300 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.

Answer 1

solution 1:

Computation of COGS and ending inventory - Specific identification
Particulars	Cost of goods available for sale			Cost of goods sold			Ending Inventory
	Nos of units	Unit Cost	Cost of goods available for sale	Nos of units sold	Unit Cost	Cost of goods sold	Nos of units in ending inventory	Unit Cost	Ending inventory
Beginning inventory	200	$12.50	$2,500	175	$12.50	$2,187.50	25	$12.50	$312.50
Purchases:
20-Jan	130	$11.50	$1,495	125	$11.50	$1,437.50	5	$11.50	$57.50
30-Jan	300	$11.00	$3,300	0	$11.00	$0.00	300	$11.00	$3,300.00
Total	630		$7,295	300		$3,625.00	330		$3,670.00

Solution 2:

Computation of ending inventory COGS under Weighted Average Cost - Laker Company
Date	Beginning Inventory			Purchase			Cost of Goods Sold			Ending Inventory
	Qty	Rate	Amount	Qty	Rate	Amount	Qty	Rate	Amount	Qty	Rate	Amount
1-Jan	200	$12.50	$2,500	0	$0.00	$0	0	$0.00	$0	200	$12.50	$2,500
10-Jan	200	$12.50	$2,500	0	$0.00	$0	160	$12.50	$2,000	40	$12.50	$500
20-Jan	40	$12.50	$500	130	$11.50	$1,495	0	$0.00	$0	170	$11.74	$1,995
25-Jan	170	$11.74	$1,995	0	$0.00	$0	140	$11.74	$1,643	30	$11.74	$352
25-Mar	30	$11.74	$352	300	$11.00	$3,300	0	$0.00	$0	330	$11.07	$3,652
Total							300		$3,643	330		$3,652

Solution 3:

Computation of ending inventory COGS under FIFO - Laker Company
Date	Beginning Inventory			Purchase			Cost of Goods Sold			Ending Inventory
	Qty	Rate	Amount	Qty	Rate	Amount	Qty	Rate	Amount	Qty	Rate	Amount
1-Jan	200	$12.50	$2,500.00	0	$0.00	$0.00	0	$0.00	$0.00	200	$12.50	$2,500.00
10-Jan	200	$12.50	$2,500.00	0	$0.00	$0.00	160	$12.50	$2,000.00	40	$12.50	$500.00
20-Jan	40	$12.50	$500.00	130	$11.50	$1,495.00	0	$0.00	$0.00	40	$12.50	$500.00
										130	$11.50	$1,495.00
25-Jan	40	$12.50	$500.00	0	$0.00	$0.00	40	$12.50	$500.00	30	$11.50	$345.00
	130	$11.50	$1,495.00				100	$11.50	$1,150.00
30-Jan	30	$11.50	$345.00	300	$11.00	$3,300.00	0	$0.00	$0.00	30	$11.50	$345.00
										300	$11.00	$3,300.00
Total							300		$3,650.00	330		$3,645.00

solution 4:

Computation of ending inventory COGS under LIFO - Laker Company
Date	Beginning Inventory			Purchase			Cost of Goods Sold			Ending Inventory
	Qty	Rate	Amount	Qty	Rate	Amount	Qty	Rate	Amount	Qty	Rate	Amount
1-Jan	200	$12.50	$2,500.00	0	$0.00	$0.00	0	$0.00	$0.00	200	$12.50	$2,500.00
10-Jan	200	$12.50	$2,500.00	0	$0.00	$0.00	160	$12.50	$2,000.00	40	$12.50	$500.00
20-Jan	40	$12.50	$500.00	130	$11.50	$1,495.00	0	$0.00	$0.00	40	$12.50	$500.00
										130	$11.50	$1,495.00
25-Jan	40	$12.50	$500.00	0	$0.00	$0.00	130	$11.50	$1,495.00	30	$12.50	$375.00
	130	$11.50	$1,495.00				10	$12.50	$125.00
30-Jan	30	$12.50	$375.00	300	$11.00	$3,300.00	0	$0.00	$0.00	30	$12.50	$375.00
										300	$11.00	$3,300.00
Total							300		$3,620.00	330		$3,675.00