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. Units Acquired at Cost 200 units@ $12.50 = $2,500 Units sold at Retail 160 units @ $21.50 Date Activities Jan. 1 Beginning inventory Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase Totals 130 units@ $11.50 = 1,495 140 units @ $21.50 300 units@ $11.00 = 630 units 3,300 $7,295 300 units The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 330 units, where 300 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. Required 1 Required 2 Required 3 Required 4 Complete the table to determine the cost assigned to ending inventory and cost of goods sold using specific identification. (Round cost per unit to 2 decimal places.) Specific Identification

Answer 1

1. Under specific identification method.

Ending inventory = ( 300 units x 11) + ( 5 units x 11.50) + ( 25 units x 12.50)

Ending inventory = $ 3,670.

Cost of goods sold = ( 175 units x $ 12.50) + ( 125 units x $ 11.50)

Cost of goods sold = $ 3,625

2. Weighted average method.

Date	Purchases	Cost of goods sold	Balance
Jan 1	Beginning		200 units x $ 12.50 = $ 2,500
Jan 10		160 units x $ 12.50 = $ 2,000	40 units x $ 12.50 = $ 500
Jan 20	130 units x $ 11.50= $ 1,495		170 units x $ 11.735 = $ 1,994.95
Jan 25		140 units x $ 11.735 = $ 1,642.90	30 units x $ 11.735= $ 352.05
Jan 30	300 units x $ 11 = $ 3,300		330 units x $ 11.067= $ 3,652.10

Ending inventory = $ 3,652.10

Cost of goods sold = $ 3,642.90

3. Under FIFO method, first units are sold out first. So ending inventory of 330 units consists of 300 units from January 30 purchase and balance between 30 units from January 20 purchase.

Ending inventory = ( 300 units x 11)+(30 units x 11.50)

Ending inventory = $ 3,645.

Cost of goods sold = ( 200 units x $ 12.50) + ( 100 units x $ 11.50)

Cost of goods sold = $ 3,650

4. Under LIFO method, last purchased items are sold out first. On first sale of 160 units, it is fully sold from beginning units. Now balance in beginning inventory is 40 units. For second sale, 140 units consists of 130 units from last purchase and 10 units from beginning. So now balance in beginning inventory units is 30 units.

Ending inventory = ( 30 units x $ 12.50) + ( 300 units x 11)

Ending inventory = $ 3,675.

Cost of goods sold = ( 160 units x $ 12.50) + ( 130 units x $ 11.50) + ( 10 units x $ 12.50)

Cost of goods sold = $ 3,620

SUMMARY:

1. Ending inventory = $ 3,670

Cost of goods sold = $ 3,625

2. Ending inventory = $ 3,652.10

Cost of goods sold = $ 3,642.90

3. Ending inventory = $ 3,645

Cost of goods sold = $ 3,650

4. Ending inventory = $ 3,675

Cost of goods sold = $ 3,620