Question

(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 145 units @ $ 7.00 = $ 1,015 105 units @ $16.00 Date Activities Jan. 1 Beginning inventory Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase 70 units @ $ 6.00 = 420 85 units @ $16.00 @ $5.50 = 190 units 405 units 1,045 $2,480 Totals 190 units The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 215 units, where 190 are from the January 30 purchase, 5 are from the January 20 purchase, and 20 are from beginning inventory. Award: 1.00 point 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.

Answer 1

Calculation of the ending inventory at January 30. Total Units in Ending Inventory = Beginning inventory + purchases - sales = 145+ (70+ 190) - (105 +85) = 215 units 1) Ending Cost per Complete the table to determine the cost assigned to ending inventory and cost of goods sold using specific identification. Available for sale Cost of Goods Sold Ending Inventory Ending Purchase Units Unit Activity Units Unit cost COGS inventory- Date Cost inventory- unit units Jan. 1 Begning Inventory | 145 $7.00 125 $7.00 $875.00 201 $7.00 $140.00 Jan. 20 Purchase 65 $6.00 $390.00 $30.000 Jan. 30 Purchase 190 $5.50 $5.50 $1,045.00 sold cost $6.00 Totals 405 190 $1,265.00 215 $1,215.00 2) Determine the cost assigned to ending inventory and to cost of goods sold using weighted average. Weighted Average - Perpetual Goods Purchased Cost of Goods Sold Date # of units Cost per er # of units sold Cost per unit Cost of Goods Sold unit Jan. 1 Jan. 10 Jan. 20 $7.00 = $735.00 105 @ L 70 @ $6.00 Inventory Balance # of units in Cost per Ending ending unit Inventory inventory 145 @ $7.00 = $1.015.00 40 @ $7.00 = $280.00 40 a $7.00 = $280.00 70 @ $6.00= $420.000 110 @ $6.36= $700.000 25 a $6.36= $159.09 25 @ $6.36= $159.091 190 @ $5.50= $1,045.00 215 @ $5.60= $1,204.09 Average cost Jan. 25 Jan. 30 85 @ $6.36= $540.91 190 @ $5.50 + Totals 1901 $1,275.91 3) Determine the cost assigned to ending inventory and to cost of goods sold using FIFO Perpetual FIFO: Goods Purchased Cost of Goods Sold Cost per Cost per Date er # of units sold # of units Cost of Goods Sold unit unit Jan. 1 Jan. 10 105 @ $7.00= $735.00 Jan. 20 70 a $6.00 Inventory Balance # of units in Cost per Ending ending unit Inventory 145 @ $7.00= $1,015.00 40 @ $7.00 = $280.000 40 @ $7.00= $280.000 70 @ $6.00 = 1 $420.00 $700.000 ola $7.00= $0.00 25 @ $6.00= $150.001 $150.00 ola $7.00 = $0.00 25 @ $6.00= $150.00 190 @ $5.50 = $1,045.00 215 $1,195.000 Jan. 25 40 @ 40 @ $7.00 451 $7.00= $6.00= 45 @ $280.00 $270.00 $550.00 Jan. 30 190 @ $5.50 Totals 190 $1,285.00 4) Determine the cost assigned to ending inventory and to cost of goods sold using LIFO Perpetual LIFO: Goods Purchased Cost of Goods Sold Cost per Date # of units Cost per | # of units sold Cost of Goods Sold unit unit Jan. 1 Jan. 10 105 a $7.00 = $735.00 Jan. 20 70 a $6.00 Inventory Balance # of units in Cost per Ending ending unit Inventory 145 @ $7.00= $1,015.00 40 @ $7.00= $280.00 40 a $7.00= $280.00 70 @ $6.00= $420.00 $700.000 25 @ $7.00= $175.00 ola $6.00 = $0.00 $175.000 25 @ $7.00= $175.00 0 a $6.00 = $0.00 190 @ $5.50= $1,045.00 215 $1,220.00 Jan. 25 70 @ $6.00= $7.00= 15 a $420.00 $105.00 $525.00 Jan. 30 190 @ $5.50 Totals 190 $1,260.00