Question

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	185	units	@	$	11.00	=	$	2,035
Jan.	10		Sales										145	units	@	$	20.00
Jan.	20		Purchase	100	units	@	$	10.00	=		1,000
Jan.	25		Sales										125	units	@	$	20.00
Jan.	30		Purchase	270	units	@	$	9.50	=		2,565
			Totals	555	units					$	5,600		270	units

The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 285 units, where 270 are from the January 30 purchase, 5 are from the January 20 purchase, and 10 are from beginning inventory.

	Perpetual LIFO: Goods Purchased Cost of Goods Sold Inventory Balance Date # of units Cost per unit # of units sold Cost per unit Cost of Goods Sold # of units Cost per unit Inventory Balance January 1 185 @ $11.00 = $2,035.00 January 10 January 20 January 25 January 30 Totals

Answer 1

Perpetual LIFO: Goods Purchased Cost of Goods Sold Inventory Balance Date # of units Cost per unit # of units sold Cost per unit Cost of Goods Sold # of units Cost per unit Inventory Balance January 1 185 @ $11.00 = $2,035.00 January 10 145 @ 11 = 1595 40 @ 11 = 440 January 20 100 @ 10 40 @ 11 = 440 100 @ 10 = 1000 140 1440 January 25 100 @ 10 = 1000 25 @ 11 = 275 125 1275 15 @ 11 = 165 January 30 270 @ 9.50 15 @ 11 = 165 270 @ 9.50 = 2565 Totals 2870 285 2730