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 | 180 | units | @ | $ | 10.50 | = | $ | 1,890 | ||||||||
Jan. | 10 | Sales | 140 | units | @ | $ | 19.50 | |||||||||||
Jan. | 20 | Purchase | 110 | units | @ | $ | 9.50 | = | 1,045 | |||||||||
Jan. | 25 | Sales | 130 | units | @ | $ | 19.50 | |||||||||||
Jan. | 30 | Purchase | 260 | units | @ | $ | 9.00 | = | 2,340 | |||||||||
Totals | 550 | units | $ | 5,275 | 270 | units | ||||||||||||
The Company uses a perpetual inventory system. For specific
identification, ending inventory consists of 280 units, where 260
are from the January 30 purchase, 5 are from the January 20
purchase, and 15 are from beginning inventory.
rev: 03_14_2019_QC_CS-162819
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.
Ans. 1 | Specific identification: | ||||||||||
Available for sale | Cost of goods sold | Ending inventory | |||||||||
Purchase date | Activity | Units | Rate | Cost | Units | Rate | Cost | Units | Rate | Cost | |
1-Jan | Beginning inventory | 180 | $10.50 | $1,890 | 165 | $10.50 | $1,733 | 15 | $10.50 | $158 | |
20-Jan | Purchases | 110 | $9.50 | $1,045 | 105 | $9.50 | $998 | 5 | $9.50 | $48 | |
30-Jan | Purchases | 260 | $9.00 | $2,340 | 0 | $9.00 | $0 | 260 | $9.00 | $2,340 | |
Total | 550 | $5,275 | Cost of goods sold | $2,730 | Ending inventory | $2,545 | |||||
Sold units = No. of units available on particular date - Ending inventory units on the same date. | |||||||||||
Purchase date | Units available (a) | Ending inventory (b) | Units sold (a - b) | ||||||||
1-Jan | 180 | 15 | 165 | ||||||||
20-Jan | 110 | 5 | 105 | ||||||||
30-Jan | 260 | 260 | 0 | ||||||||
Ans. 2 | Weighted Average (Perpetual) | ||||||||||
Purchase | Cost of goods sold | Balance | |||||||||
Date | Quantity | Rate | Total cost | Quantity | Rate | Total cost | Quantity | Rate | Total cost | ||
1-Jan | 180 | $10.50 | $1,890 | 180 | $10.50 | $1,890 | |||||
10-Jan | 140 | $10.50 | $1,470 | 40 | $10.50 | $420 | |||||
20-Jan | 110 | $9.50 | $1,045 | 150 | $9.77 | 1465 | |||||
25-Jan | 130 | $9.77 | $1,270 | 20 | $9.77 | $195 | |||||
30-Jan | 260 | $9.00 | $2,340 | 280 | $9.05 | $2,535 | |||||
Total | Cost of goods sold | $2,740 | Cost of Ending inventory | $2,535 | |||||||
*Weighted average rate is calculated by using the formula of (Total available balance / Total units available). | |||||||||||
Ans. 3 | FIFO Perpetual: | ||||||||||
Purchase | Cost of goods sold | Balance | |||||||||
Date | Quantity | Rate | Total cost | Quantity | Rate | Total cost | Quantity | Rate | Total cost | ||
1-Jan | 180 | $10.50 | $1,890 | 180 | $10.50 | $1,890 | |||||
10-Jan | 140 | $10.50 | $1,470 | 40 | $10.50 | $420 | |||||
20-Jan | 110 | $9.50 | $1,045 | 40 | $10.50 | $420 | |||||
110 | $9.50 | $1,045 | |||||||||
25-Jan | 40 | $10.50 | $420 | ||||||||
90 | $9.50 | $855 | 20 | $9.50 | $190 | ||||||
30-Jan | 260 | $9.00 | $2,340 | 20 | $9.50 | $190 | |||||
260 | $9.00 | $2,340 | |||||||||
Total | Cost of goods sold | $2,745 | Cost of Ending inventory | $2,530 | |||||||
*In FIFO method the units that have purchased first, are released the first one and the ending inventory | |||||||||||
units remain from the last purchases. | |||||||||||
Ans. 4 | Perpetual LIFO: | ||||||||||
Purchase | Cost of goods sold | Balance | |||||||||
Date | Quantity | Rate | Total cost | Quantity | Rate | Total cost | Quantity | Rate | Total cost | ||
1-Jan | 180 | $10.50 | $1,890 | 180 | $10.50 | $1,890 | |||||
10-Jan | 140 | $10.50 | $1,470 | 40 | $10.50 | $420 | |||||
20-Jan | 110 | $9.50 | $1,045 | 40 | $10.50 | $420 | |||||
110 | $9.50 | $1,045 | |||||||||
25-Jan | 110 | $9.50 | $1,045 | ||||||||
20 | $10.50 | $210 | 20 | $10.50 | $210 | ||||||
30-Jan | 260 | $9.00 | $2,340 | 20 | $10.50 | $210 | |||||
260 | $9.00 | $2,340 | |||||||||
Total | Cost of goods sold | $2,725 | Cost of Ending inventory | $2,550 | |||||||
*In LIFO method the units that have purchased last, are released the first one and the ending inventory | |||||||||||
units remain from the first purchases. |
Required information Use the following information for the Exercises below. [The following information applies to the...
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 180 units @ $ 10.50 = $ 1,890 Jan. 10 Sales 140 units @ $ 19.50 Jan. 20 Purchase 110 units @ $ 9.50 = 1,045 Jan. 25 Sales 130 units @ $ 19.50 Jan....
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 240 units @ $ 16.50 = $ 3,960 Jan. 10 Sales 190 units @ $ 25.50 Jan. 20 Purchase 170 units @ $ 15.50 = 2,635 Jan. 25 Sales 190 units @ $...
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 100 units @ $10.50 - $1,890 n. le Sales 140 nits $19.50 Jan. 20 Purchase 110 units $ 9.50 1,045 Jan. 25 Sales 130 units @ $19.se Jan. 30 Purchase 260 units $9.00...
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 240 units @ $ 16.50 = $ 3,960 Jan. 10 Sales 190 units @ $ 25.50 Jan. 20 Purchase 170 units @ $ 15.50 = 2,635 Jan. 25 Sales 190 units @ $...
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 145 units @ $ 7.00 = $ 1,015 Jan. 10 Sales 105 units @ $ 16.00 Jan. 20 Purchase 70 units @ $ 6.00 = 420 Jan. 25 Sales 85 units @ $...
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. Units sold at Retail Units Acquired at Cost 225 units@ $15.00 = $ 3,375 175 units @ $24.00 Date Activities Jan. 1 Beginning inventory Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase Totals 180 units@ $14.00 = 2,520 210 units @ $24.00 350...
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. Date Units sold at Activities whits Aequired at copt Beginning 100 units $10.50 =$1,890 Jan. Inventory Jan. 10 Sales 140 units $19.50 Jan. 20 Purchase 110 units$ 9.50 - 1,045 Jan. 25 Sales 130 units $19.50 Jan. 30 Purchase 260 unitats 9.00 - 2,340 Totala 550 units $5,275 270 units The Company uses a perpetual...
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 Unit Acou 180 units s t sle.se $1,98 110 units 9,50 15 Date Activities Jan. 1 Beginning inventory Jan. 1e Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase Totals 15195 The Company uses a perpetual Inventory system For specific identification, ending Inventory consists of 280...
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 210 units @ $ 13.50 = $ 2,835 Jan. 10 Sales 160 units @ $ 22.50 Jan. 20 Purchase 150 units @ $ 12.50 = 1,875 Jan. 25 Sales 180 units @ $...
equired 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 160 units @ $ 8.50 = $ 1,360 Jan. 10 Sales 120 units @ $ 17.50 Jan. 20 Purchase 100 units @ $ 7.50 = 750 Jan. 25 Sales 120 units @ $...