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. Unita boquired at cost 200 units $16.50 - $ 3.960 Units sold at Retail 190 unite $25.50 Activities Jan. 1 Seginning Inventory Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase Totale 170 units $15.50 - 2,635 190 units $25.50 $15.00 - 380 units 790 units 5,700 $12,295 300 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. 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

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	240	$16.50	$3,960	215	$16.50	$3,547.50	25	$16.50	$412.50
Purchases:
20-Jan	170	$15.50	$2,635	165	$15.50	$2,557.50	5	$15.50	$77.50
30-Jan	380	$15.00	$5,700	0	$15.00	$0.00	380	$15.00	$5,700.00
Total	790		$12,295	380		$6,105.00	410		$6,190.00

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	240	$16.50	$3,960	0	$0.00	$0	0	$0.00	$0	240	$16.50	$3,960
10-Jan	240	$16.50	$3,960	0	$0.00	$0	190	$16.50	$3,135	50	$16.50	$825
20-Jan	50	$16.50	$825	170	$15.50	$2,635	0	$0.00	$0	220	$15.73	$3,460
25-Jan	220	$15.73	$3,460	0	$0.00	$0	190	$15.73	$2,988	30	$15.73	$472
25-Mar	30	$15.73	$472	380	$15.00	$5,700	0	$0.00	$0	410	$15.05	$6,172
Total							380		$6,123	410		$6,172

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	240	$16.50	$3,960.00	0	$0.00	$0.00	0	$0.00	$0.00	240	$16.50	$3,960.00
10-Jan	240	$16.50	$3,960.00	0	$0.00	$0.00	190	$16.50	$3,135.00	50	$16.50	$825.00
20-Jan	50	$16.50	$825.00	170	$15.50	$2,635.00	0	$0.00	$0.00	50	$16.50	$825.00
										170	$15.50	$2,635.00
25-Jan	50	$16.50	$825.00	0	$0.00	$0.00	50	$16.50	$825.00	30	$15.50	$465.00
	170	$15.50	$2,635.00				140	$15.50	$2,170.00
30-Jan	30	$15.50	$465.00	380	$15.00	$5,700.00	0	$0.00	$0.00	30	$15.50	$465.00
										380	$15.00	$5,700.00
Total							380		$6,130.00	410		$6,165.00

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	240	$16.50	$3,960.00	0	$0.00	$0.00	0	$0.00	$0.00	240	$16.50	$3,960.00
10-Jan	240	$16.50	$3,960.00	0	$0.00	$0.00	190	$16.50	$3,135.00	50	$16.50	$825.00
20-Jan	50	$16.50	$825.00	170	$15.50	$2,635.00	0	$0.00	$0.00	50	$16.50	$825.00
										170	$15.50	$2,635.00
25-Jan	50	$16.50	$825.00	0	$0.00	$0.00	170	$15.50	$2,635.00	30	$16.50	$495.00
	170	$15.50	$2,635.00				20	$16.50	$330.00
30-Jan	30	$16.50	$495.00	380	$15.00	$5,700.00	0	$0.00	$0.00	30	$16.50	$495.00
										380	$15.00	$5,700.00
Total							380		$6,100.00	410		$6,195.00