Question

Required information Use the following information for the Exercises below. [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 225 units @ $ 15.00 = $ 3,375 Jan. 10 Sales 175 units @ $ 24.00 Jan. 20 Purchase 180 units @ $ 14.00 = 2,520 Jan. 25 Sales 210 units @ $ 24.00 Jan. 30 Purchase 385 units @ $ 13.00 = 5,005 Totals 790 units $ 10,900 385 units rev: 09_15_2017_QC_CS-99723 Exercise 5-5A Periodic: Inventory costing LO P3 Required: The Company uses a periodic inventory system. For specific identification, ending inventory consists of 405 units, where 385 are from the January 30 purchase, 5 are from the January 20 purchase, and 15 are from beginning inventory. Determine the cost assigned to ending inventory and to cost of goods sold using (a) specific identification, (b) weighted average, (c) FIFO, and (d) LIFO.

Answer 1

Answers

	FIFO	LIFO	Weighted Average	Specific Identification
Ending Inventory	$      5,285.00	$              5,895.00	$                 5,589.00	$      5,300.00
Cost of Goods Sold	$      5,615.00	$              5,005.00	$                 5,313.00	$      5,600.00

--Working

FIFO	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	225	$                15.00	$                        3,375.00	225	$               15.00	$                 3,375.00	0	$                 15.00	$                         -
Purchases:
20-Jan	180	$                14.00	$                        2,520.00	160	$               14.00	$                 2,240.00	20	$                 14.00	$                280.00
30-Jan	385	$                13.00	$                        5,005.00	0	$               13.00	$                              -	385	$                 13.00	$            5,005.00
TOTAL	790		$                      10,900.00	385		$                 5,615.00	405		$            5,285.00
LIFO	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	225	$                15.00	$                        3,375.00	0	$               15.00	$                              -	225	$                 15.00	$            3,375.00
Purchases:
20-Jan	180	$                14.00	$                        2,520.00	0	$               14.00	$                              -	180	$                 14.00	$            2,520.00
30-Jan	385	$                13.00	$                        5,005.00	385	$               13.00	$                 5,005.00	0	$                 13.00	$                         -
TOTAL	790		$                      10,900.00	385		$                 5,005.00	405		$            5,895.00
Specific Identification	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	225	$                15.00	$                        3,375.00	210	$               15.00	$                 3,150.00	15	$                 15.00	$                225.00
Purchases:
20-Jan	180	$                14.00	$                        2,520.00	175	$               14.00	$                 2,450.00	5	$                 14.00	$                  70.00
30-Jan	385	$                13.00	$                        5,005.00	0	$               13.00	$                              -	385	$                 13.00	$            5,005.00
TOTAL	790		$                      10,900.00	385		$                 5,600.00	405		$            5,300.00
Average Method	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	225	$                15.00	$                        3,375.00
Purchases:
20-Jan	180	$                14.00	$                        2,520.00
30-Jan	385	$                13.00	$                        5,005.00
TOTAL	790	$              13.797	$                      10,900.00	385	$          13.8000	$                 5,313.00	405	$            13.8000	$            5,589.00