Question

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 Purchase Jan. 25 Sales Jan. 30 Purchase 730 units $9,905 The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 360 units, where 340 are from the January 30 purchase, 5 are from the January 20 purchase, and 15 are from beginning inventory.

Answer 1

1 Specific Identification Jan-01 Cost of goods available for sale 220$ 14.50 $ 3,190 Cost of goods sold 205 $ 14.50 $ Ending Inventory 2,973 15 $ 14.50 $ 218 2,228 68 Jan-20 Jan-30 170 $ 340 $ 730 13.50 $ 13.00 $ 2,295 4,420 9,905 165 $ $ 370 13.50 $ 13.00 $ 5 $13.50 $ 340 $ 13.00 $ 360 4,420 4,705 Total 5,200 2 Weighted - Average Cost of goods sold Cost of goods available for sale Jan-01 Jan-10 Jan-20 170 $ 13.50 $ 2,295 170 $ 14.50 $ 2,465 Ending Inventory 220 $ 14.50 $ 50 $ 14.50 $ 50 $ 14.50 $ 170 $ 13.50 $ 220 $ 13.73 20 $ 13.73 $ 20 $ 13.73 $ 340 $ 13.00 $ 360 $ 13.04 $ 3,190 725 725 2,295 3,020 275 Jan-25 200 $ 13.73 $ 2,746 Jan-30 340 $ 13.00 $ 4,420 275 4,420 4,695 Total 510 $ 6,715 370 $ 5,211

3 FIFO 3,190 Cost of goods available for sale Jan-01 Jan-10 Jan-20 170 $ 13.50 $ 2,295 725 Cost of goods sold Ending Inventory 220 $ 14.50 $ 170 $ 14.50 $ 2,465 50 $ 14.50 $ 50 $ 14.50 $ 170 $ 13.50 $ $ 50 $ 14.50 $ 725 20 $13.50 $ 150 $ 13.50 $ 2,025 $ 20 $ 13.50 $ 340 $ 13.00 $ 370 $ 5,215 360 $ 725 2,295 3,020 270 Jan-25 270 Jan-30 340 $ 13.00 $ 4,420 270 4,420 4,690 Total 510 $ 6,715

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