Question

MUS UNUS Homework 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 1 Activities Betinine nentory (8 0430:30 Units Aquired at Costunits sold 215 units $14.00 $3,010 165 unitse 100 units $13.aa- 2.10 199 units 355 Its $12.00 28 Purchase $23.03 Required: The Company uses a periodic inventory system. For specific identification, ending inventory consists of 375 units, where 355 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 no cost of goods sold using() specific identification. (b) weighted average (FIFO, and I LIFO. Complete this questions by entering your answers in the below tabs. Weighted Average FIFO Determine the cost assigned to ending inventory and to cost of goods sold using specific identification. For specific identification, ending inventory consists of 375 units, where are from the January 30 purchase, 5 are from the January 20 purchase, and 15 are from beginning inventory A) Specific Identification Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory of units Cost per of units Cost per Cost of Available for 1 of units Goods Sold in ending Beginning inventory Weighted Average >

Answer 1

1) Specific Identification Method

a) Specific Identification Method	Cost of goods available for sale			Cost of goods sold			Ending Inventory
	# of units	Cost per unit	Cost of goods available for sale	# of units sold	Cost per unit	Cost of goods sold	# of units in ending inventory	Cost per unit	Ending inventory
Beginning balance	215	$14	$3010	(215-15)= 200	$14	$2800	15	$14	$210
Purchases
Jan 20	160	$13	2080	(160-5)= 155	$13	2015	5	$13	65
Jan 30	355	$12	4260	0			355	$12	4260
Total	730		$9350	355		$4815	375		$4535

2) Average cost method

b) Average Cost	Cost of goods available for sale			Cost of goods sold			Ending Inventory
	# of units	Cost per unit	Cost of goods available for sale	# of units sold	Cost per unit	Cost of goods sold	# of units in ending inventory	Cost per unit	Ending inventory
Beginning balance	215	$14	$3010
Purchases
Jan 20	160	$13	2080
Jan 30	355	$12	4260
Total	730		$9350	355	$12.81	$4548	375	$12.81	$4804

Average cost per unit= Cost of goods available for sale/Total units

= $9350/730= $12.81 per unit

3) FIFO method

c) FIFO method	Cost of goods available for sale			Cost of goods sold			Ending Inventory
	# of units	Cost per unit	Cost of goods available for sale	# of units sold	Cost per unit	Cost of goods sold	# of units in ending inventory	Cost per unit	Ending inventory
Beginning balance	215	$14	$3010	215	$14	$3010	0
Purchases
Jan 20	160	$13	2080	140	$13	1820	20	$13	260
Jan 30	355	$12	4260	0			355	$12	4260
Total	730		$9350	355		$4830	375		$4520

4) LIFO method

d) LIFO method	Cost of goods available for sale			Cost of goods sold			Ending Inventory
	# of units	Cost per unit	Cost of goods available for sale	# of units sold	Cost per unit	Cost of goods sold	# of units in ending inventory	Cost per unit	Ending inventory
Beginning balance	215	$14	$3010	0			215	$14	3010
Purchases
Jan 20	160	$13	2080	0			160	$13	2080
Jan 30	355	$12	4260	355	$12	4260
Total	730		$9350	355		$4260	375		$5090