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. Activities Jan. 1 Beginning inventory Jan 10 Sales Jan, 20 Purchase zon, 25 sales. Units Acquired at Cost Units sold at Retail 190 its 56.0 840 100 units $15 60 units @ $5.00 80 units $15 110 units $4.50 380 units $1.950 Required: The Company uses a periodic inventory system. For specific identification, ending inventory consists of 200 units, where 180 are from the January 30 purchase, 5 are from the January 20 purchase, and 15 are from beginning inventory. Determine the cost assigned to ending inventory and to cost of goods sold using a specific identification, (b) weighted average. (FIFO, and () LIFO. Complete this question by entering your answers in the tabs below. Specific id Weighted Average FIFO LIFO Determine the cost assigned to ending inventory and to cost of goods sold using weighted average. (Round cost per unit to 2 decimal places) bj Weighted Average Cost of Goods Sold Ending Inventory Cost of Goods Available for Sale Cost of of Average Goods Cost per Available for Sale 140 840 of units sold Average Cost per Unit Cost of Goods Sold of units in ending inventory Average Cost per unit Ending Inventory Beginning inventory Purchase Jan 20 Jan 30 810 Total 380 $ 6.00 $ 1950 180.00 513 923 40 200 $ 5135 102600 Specific ld FIFO >

Answer 1

Weighted average cost method

b) Weighted average	Cost of goods available for sale			Cost of goods sold			Ending Inventory
	# of units	Average cost per unit	Cost of goods available for sale	# of units sold	Average cost per unit	Cost of goods sold	# of units in ending inventory	Cost per unit	Ending inventory
Beginning balance	140		$840
Purchases
Jan 20	60		300
Jan 30	180		810
Total	380		$1950	180	$5.13	$923.40	200	$5.13	$1026.00

Average cost per unit= Cost of goods available for sale/Total units

= $1950/380= $5.13 per unit

1)

VIBRANT COMPANY
Comparative Income Statements
	2017		2018		2019		3-year total
Sales		$850000		$850000		$850000	$2550000
Cost of goods sold
Beginning inventory	$250000		$250000		$250000		750000
Cost of purchases	500000		500000		500000		1500000
Cost of goods available for sale	750000		750000		750000		2250000
Less: Ending inventory	(250000)		(250000)		(250000)		(750000)
Cost of goods sold		(500000)		(500000)		(500000)	(1500000)
Gross profit		$350000		$350000		$350000	$1050000

2)

VIBRANT COMPANY
Comparative Income Statements
	2017		2018		2019		3-year total
Sales		$850000		$850000		$850000	$2550000
Cost of goods sold
Beginning inventory	$250000		$230000		$250000		$730000
Cost of purchases	500000		500000		500000		1500000
Cost of goods available for sale	750000		730000		750000		2230000
Less: Ending inventory	(230000)		(250000)		(250000)		(730000)
Cost of goods sold		(520000)		(480000)		(500000)	(1500000)
Gross profit		$330000		$370000		$350000	$1050000

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