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. 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 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. 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

Perpetual LIFO : Goods Purchased Cost of Goods sold Cost per Cost of Goods sold unit Date # of units Cost per unit # of units sold = January 1 January 10 January 20 170 @ $ 14.50 $ 2,465.00 = 170 @ $ 13.50 = Inventory on Hand Cost per # of units Inventory Balance unit 220 @ $ 14.50 $ 3,190.00 50 @ $ 14.50 $ 725.00 50 @ $ 14.50 $ 725.00 170 @ $13.50 $ 2,295.00 $3,020.00 20 @ $ 14.50 $ 290.00 0 @ $ 13.50 $ $ 290.00 20 @ $14.50 $ 290.00 340 @ $ 13.00 $4,420.00 $4,710.00 360 $4,710.00 January 25 @ = 170 30 $ S 13.50 14.50 @ $ 2,295.00 S 435.00 $ 2,730.00 January 30 340 @ S 13.00 Totals 510 $ 26.50 370 $ 5,195.00

in case of any doubt or isssue, please do comment below