CALCULATION OF COST OF ENDING INVENTORY AND COST OF GOODS SOLD UNDER FIFO METHOD | ||||||||||
PURHASES | COST OF GOODS SOLD | CLOSING BALANCE | ||||||||
Date | Particulars | Units (A) | Rate Per unit | Total Cost | Units (A) | Rate Per unit | Total Cost | Units (A) | Rate Per unit | Total Cost |
Jan, 01 | Opening Inventory | 220 | $14.50 | $3,190 | ||||||
Jan, 10 | Sales | 170 | $14.50 | $2,465 | 50 | $14.50 | $725 | |||
Jan, 20 | Purchases | 170 | $13.50 | $2,295 | 50 | $14.50 | $725 | |||
170 | $13.50 | $2,295 | ||||||||
Jan, 25 | Sales | 50 | $14.50 | $725 | ||||||
150 | $13.50 | $2,025 | 20 | $13.50 | $270 | |||||
Jan, 30 | Purchases | 340 | $13.00 | $4,420 | 20 | $13.50 | $270 | |||
340 | $13.00 | $4,420 | ||||||||
370 | $5,215 | 360 | $4,690 | |||||||
Cost of Ending inventory= | $4,690 | |||||||||
Cost o Goods Sold = | $5,215 | |||||||||
CALCULATION OF COST OF ENDING INVENTORY AND COST OF GOODS SOLD UNDER LIFO METHOD | ||||||||||
PURHASES | COST OF GOODS SOLD | CLOSING BALANCE | ||||||||
Date | Particulars | Units (A) | Rate Per unit | Total Cost | Units (A) | Rate Per unit | Total Cost | Units (A) | Rate Per unit | Total Cost |
Jan, 01 | Opening Inventory | 220 | $14.50 | $3,190 | ||||||
Jan, 10 | Sales | 170 | $14.50 | $2,465 | 50 | $14.50 | $725 | |||
Jan, 20 | Purchases | 170 | $13.50 | $2,295 | 50 | $14.50 | $725 | |||
170 | $13.50 | $2,295 | ||||||||
Jan, 25 | Sales | 170 | $13.50 | $2,295 | ||||||
30 | $14.50 | $435 | 20 | $14.50 | $290 | |||||
Jan, 30 | Purchases | 340 | $13.00 | $4,420 | 20 | $14.50 | $290 | |||
340 | $13.00 | $4,420 | ||||||||
370 | $5,195 | 360 | $4,710 | |||||||
Cost of Ending inventory= | $4,710 | |||||||||
Cost o Goods Sold = | $5,195 | |||||||||
CALCULATION OF COST OF ENDING INVENTORY AND COST OF GOODS SOLD UNDER WEIGHTED AVERAGE COST | ||||||||||
PURHASES | COST OF GOODS SOLD | CLOSING BALANCE | ||||||||
Date | Particulars | Units (A) | Rate Per unit | Total Cost | Units (A) | Rate Per unit | Total Cost | Units (A) | Rate Per unit | Total Cost |
Jan, 01 | Opening Inventory | 220 | $14.50 | $3,190 | ||||||
Jan, 10 | Sales | 170 | $14.50 | $2,465 | 50 | $14.50 | $725 | |||
Jan, 20 | Purchases | 170 | $13.50 | $2,295 | 220 | $13.73 | $3,020 | |||
Jan, 25 | Sales | 200 | $13.73 | $2,746 | 20 | $13.73 | $275 | |||
Jan, 30 | Purchases | 340 | $13.00 | $4,420 | 360 | $13.04 | $4,695 | |||
370 | $5,211 | 360 | $4,695 | |||||||
Cost of Ending inventory= | $4,695 | |||||||||
Cost o Goods Sold = | $5,211 | |||||||||
CALCULATION OF COST OF ENDING INVENTORY AND COST OF GOODS SOLD UNDER SPECIFIC IDENTIFICATION | ||||||||||
PURHASES | COST OF GOODS SOLD | CLOSING BALANCE | ||||||||
Date | Particulars | Units (A) | Rate Per unit | Total Cost | Units (A) | Rate Per unit | Total Cost | Units (A) | Rate Per unit | Total Cost |
Jan, 01 | Opening Inventory | 220 | $14.50 | $3,190 | 205 | $14.50 | $2,973 | 15 | $14.50 | $218 |
Jan, 20 | Purchases | 170 | $13.50 | $2,295 | 165 | $13.50 | $2,228 | 5 | $13.50 | $68 |
Jan, 30 | Purchases | 340 | $13.00 | $4,420 | 340 | $13.00 | $4,420 | |||
Avaialbe For sales | 730 | $9,905 | ||||||||
370 | $5,200 | 360 | $4,705 | |||||||
Cost of Ending inventory= | $4,705 | |||||||||
Cost o Goods Sold = | $5,200 | |||||||||
LAKER COMPANY | ||||||||||
INCOME STATEMENT | ||||||||||
FOR THE MONTH ENDED JANUARY 31 | ||||||||||
Identification | Weighted Average | FIFO | LIFO | |||||||
Sales | ||||||||||
170 units @ $ 23.50 | $3,995 | $3,995 | $3,995 | $3,995 | ||||||
200 units @ $ 23.50 | $4,700 | $4,700 | $4,700 | $4,700 | ||||||
Total Sales | $8,695 | $8,695 | $8,695 | $8,695 | ||||||
Less: Cost of Goods Sold | $5,200 | $5,211 | $5,215 | $5,195 | ||||||
Gross Profit | $3,495 | $3,484 | $3,480 | $3,500 | ||||||
Less: Expenses | 2050 | 2050 | 2050 | 2050 | ||||||
Income before taxes | $1,445 | $1,434 | $1,430 | $1,450 | ||||||
Tax @ 40% | $578 | $574 | $572 | $580 | ||||||
Net income | $867 | $860 | $858 | $870 | ||||||
Answer sub Part | ||||||||||
Answer = 1) | ||||||||||
LIFO method yield the highest net income | ||||||||||
Answer = 2) | ||||||||||
Yes , Net income using weighted average fall between using LIFO and FIFO | ||||||||||
Answer = 3) | ||||||||||
If the Cost are rising than FIFO method will give the highest net income | ||||||||||
Required information Use the following information for the Exercises below [The following information applies to the...
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 Activities Units Acquired at Cost Units sold at Retail Jan. 1 Beginning inventory 220 units @ $14.50 - $3,190 170 units @ $23.50 170 units @ $13.50 - 2,295 200 units @ $23.50 340 units@ $13.00 - 4,420 Totals 370 units Date Jan. 10 Sales Jan. 20...
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 220 units $14.50 - $3,190 Units sold at Retail 170 units @ $23.50 Date Activities Jan. 1 Beginning inventory Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase Totals 170 units@ $13.50 - 2,295 200 units @ $23.50 340 unitse $13.00 - 730 units 4,420 $9,905 370 units The Company...
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 Activities Units Acquired at Cost Units sold at Retail Jan. 1 Beginning inventory 220 units@ $14.50 = $3,190 Jan. 10 Sales 170 units @ $23.50 Jan. 20 Purchase 170 units@ $13.50 = 2,295 Jan. 25 Sales 200 units @ $23.50 Jan. 30 Purchase 340 units@ $13.00 = 4,420 Totals 730 units $9,905 370 units...
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 Activities Units Acquired at Cost Units sold at Retail Jan. 1 Beginning inventory 220 units@ $14.50 = $3,190 Jan. 10 Sales 170 units $23.50 Jan. 20 Purchase 170 units@ $13.50 = 2,295 Jan. 25 Sales 200 units @ $23.50 Jan. 30 Purchase 340 units@ $13.00 = 4,420 Totals 730 units $9,905 370 units The...
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 220 units @ $14.50 = $3,190 170 units @ $23.50 Date Activities Jan. 1 Beginning inventory Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase Totals 170 units@ $13.50 = 2,295 200 units @ $23.50 340...
PROBLEMS - CHAPTER 5 6 Some da Sovey HelpS 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 Required at Coat 220 units $14.50 - $3,190 Units sold at Retail Date Activities Jan. 1 Beginning inventory Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase Totals 170 units @ $23.50 170 unitse $13.50 - 2.295 200 units @ $23.50 $13.00...
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 Activities Beginning Jan. 1 inventory Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase Totals Units Acquired at Cost Units sold at Retail 220 units@ $14.50 = $ 3,190 170 units@ $23.50 170 units@ $13.50 = 2,295 200 units @ $23.50 370 units@ $13.00 = 4,810 760 units $10,295 370 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 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 @ $...
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...
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 @ $ 22.50 Jan....