Question

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. Units Acquired at Cost 165 units@ $9.00 = $1,485 Units sold at Retail Date Activities Jan. 1 Beginning inventory Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase Totals 125 units @ $18.00 110 units@ $8.00 880 125 units @ $18.00 230 units@ $7.50 505 units 1,725 $4,090 250 units The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 255 units, where 230 are from the January 30 purchase, 5 are from the January 20 purchase, and 20 are from beginning inventory 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

Cost assigned to ending inventory and cost of goods sold is as prepared below:

1.

Snecific Identification-Pernetual Cost of oods sold Cost per mit Cost of goods sold Date Goods Purchased Ending Inentory Cost perunit Cost ofpurchase Units sold Cost per umit Ending balnce 1485 00 14500 360 00 36000 35000 880 00 124000 Units Units Jan-01 Blace Jan-10 Balae Jan-20 16500 1500 4000 40 00 4000 110.00 150.00 125.00 9.00 1.125.00 9.00 00 11000 88000 9.00 8.00 Blauce Jan-25 20.00 105.00 9.00 3.00 130.00 840,00 13000 9.00 8.00 2000 500 2500 2000 5.00 23000 255 00 4000 Balae Jan-30 220.00 18000 4000 1725 00 1945,00 172500 23000 750 9.00 8.00 7 50 Bilance 2145.00 34000 260500 250.00

2.

Weichted Areme-Pemetual Cost of eoods sold Goods Purchased Ending Imreutory Date CnstperitCnst ofurchase its.soldCrst permit Cst of godssnld Cst permitEnding halance 1485 00 1495 00 36000 360.00 Units Units 165.00 Tan-01 9.00 9.00 Balae Jan-10 Blace Tan-20 1500 40,00 40.00 125.00 9.00 L125.00 9.00 36000 11000 R00 88000 4000 900 110.00 880,00 R 00 124000 Blauce 15000 8.27 1033 33 Jan-25. 125.00 8 27 206 67 206 67 20667 25.00 8 27 Balance 25.00 Jan 30 25 00 750 23000 172500 827 23000 750 1725.00 Bilance 34000 250.00 1931 67 260500 2158.33 25500 758

3.

FIFO-Pemetual Cost of oods sold Date Goods Purchased Ending Imentory CnstperitCnst ofurchase its.soldCrst permit Cst of godssnld lCst per mitEnding halance 1485 00 14500 36000 360.00 Units Units Jan-01 Blace Jan-10 Blace Tan-20 165.00 1500 125.00 9.00 L125.00 40 00 9.00 40.00 36000 11000 R00 88000 40.00 900 110.00 880,00 8.00 Enlaue 15000 124000 9.00 Jan-25. 40 00 36000 680 00. 85.00 R 00 25.00 R 00 20000 Balance 25.00 20000 Jan 30 750 23000 172500 2500 8.00 7 50 20000 23000 1725.00 Bilance 34000 250.00 1925 00 260500 216.00 25500

4.

LIFO-Pemetunl Cost of oods sold Ending Imreutory Date Goods Purchased CnstperitCnst ofurchase its.soldCrst permit Cst of godssnld CstpermitEnding halance 1485 00 145 00 36000 36000 Units Units 165.00 Tan-01 Balae Jan-10 Blace Tan-20 1500 40,00 40 00 L125.00 125.00 9.00 9.00 11000 R00 88000 40.00 900 360.00 880,00 110.00 8.00 Blauce 15000 124000 88O 00. 135 00 110 00 Jan-25. R00 225.00 15.00 9 00 25.00 9.00 Balance 25.00 225.00 Jan 30 750 23000 172500 2500 9.00 7 50 22500 23000 1725.00 250.00 1950 00 Bilance 34000 260500 2140.00 25500