Question

Required information

Use the following information for the Exercises below.

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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.	30		Purchase	320	units	@	$	12.00	=		3,840
			Totals	680	units					$	8,550		340	units

The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 340 units, where 320 are from the January 30 purchase, 5 are from the January 20 purchase, and 15 are from beginning inventory.

Exercise 5-3 Perpetual: Inventory costing methods LO P1

Required:
1. Complete the table to determine the cost assigned to ending inventory and cost of goods sold using specific identification.

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 Available for Sale Cost of Goods Sold Ending Inventory Purchase Date Activity Units Unit Cost Units Sold Unit Cost COGS Ending Inventory- Units Cost Per Unit Ending Inventory- Cost Jan. 1 Beginning inventory 210 $2835.00 195 $2835.00 $552,825 Jan. 20 Purchase 150 $1875.00 Jan. 30 Purchase 320 $3840.00 680 195 $552,825 0 $0

Answer 1

Specific Identification method : Available for sale Cost of goods sold Ending inventory Ending COGS inventory Ending Date Activities Cost per inventory Units Units cost Units sold Units cost unit Units Cost 13.50 13.50 202.50 01-Jan Beginning Inventory 210.00 195.00 2,632.50 15.00 13.50 12.50 20-Jan Purchases 150.00 12.50 145.00 1,812.50 5.00 12.50 62.50 30-Jan Purchases 320.00 12.00 12.00 320.00 12.00 3,840.00 680.00 340.00 4,445.00 340.00 4,105.00 Cost of goods sold is S 4,445 and Cost of ending inventory is S 4,105/.