Question

financial accounting fundamentals 7- Im not too sure what im doing incorrectly

newconnect.meducation.com Chapter 5 Exercises ME Reader hapter 5 Exercises i Help Save & Exit Submit Check my work 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. eBook Units Acquired at Cost 205 units $13.00 = $2,665 Units sold at Retail Date Activities Jan. 1 Beginning inventory Jan. 18 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase Totals 140 units $12.00 - $11.50 - 165 units @ $22.00 145 units @ $22.00 1,680 3,565 $7,910 310 units 655 units 310 units The Company uses a perpetual inventory system. For specific identification, ending Inventory consists of 345 units, where 310 are from the January 30 purchase, 5 are from the January 20 purchase, and 30 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. < Prev 2 of 5 Next >

Answer 1

Calculation of Cost of goods sold and ending inventory is as follows:-

Specific Identification Method Purchases Rate Cost Of Goods Sold Rate Qty | Amount Qty Amount Qty Date Jan-01 Jan-10 Jan-20 165 $ 13.00 $ 2,145.00 140 $ 12.00 $ 1,680.00 Closing Balance Rate / 205 $ 13.00 $ 40 $ 13.00 $ 40 $ 13.00 $ 140 $ 12.00 $ 30 $ 13.00 $ 5 $ 12.00 $ 30$ 13.00 $ 5 $ 12.00 $ 310 $ 11.50$ 345 $ Jan-25 10 $ 135 $ 13.00 12.00 $ $ 130.00 1,620.00 Amount 2,665.00 520.00 520.00 1,680.00 390.00 60.00 390.00 60.00 3,565.00 4,015.00 Jan-30 310 $ 11.50 $ 3,565.00 Total 450 $ 5,245.00 310 $ 3,895.00

Weighted Average Cost Method. Purchases Rate Qty Amount Cost Of Goods Sold Rate Qty Qty Date Jan-01 Jan-10 Jan-20 165 $ 13.00 $ 2,145.00 140 $ 12.00 $ 1,680.00 Closing Balance Rate 205 $ 13.00 $ 40 $ 13.00 $ 40 $ 13.00 $ 140 $ 12.00 $ 12.22 $ 35 $ 12.22 $ 35 $ 12.22 $ 310 $ 11.50 $ 345 $ 11.57 $ 345 $ 11.57 $ 180$ Average Cost Jan-25 Jan-30 Amount 2,665.00 520.00 520.00 1,680.00 2,200.00 427.78 427.78 3,565.00 3,992.78 3,992.78 145 $ 12.22 $ 1,71 310 $ 11.50 $ 3,565.00 Average Cost Total 450 $ 5,245.00 310 $ 3,917.22

FIFO Method Purchases Rate Cost Of Goods Sold Rate Qty Amount Qty Amount Qty Date Jan-01 Jan-10 Closing Balance Rate 205 $ 13.00 40 $ 13.00 Amount 2,665.00 520.00 165 $ 13.00 $ $ $ 2,145.00 Jan-20 140 $ 12.00 $ 1,680.00 40 $ 140 $ 13.00 $ 12.00 $ 520.00 1,680.00 Jan-25 40 $ 105 $ 13.00 $ 12.00 $ 520.00 1,260.00 Jan-30 310 $ 11.50 $ 3,565.00 35 $ 35 $ 310 $ 345 12.00 12.00 11.50 $ $ $ $ 420.00 420.00 3,565.00 3,985.00 Total 450 $ 5,245.00 3101 $ 3,925.00

LIFO Method Purchases Rate Qty Amount Cost Of Goods Sold Rate Qty Amount Qty Date Jan-01 Jan-10 Jan-20 Closing Balance Rate 205 $ 13.00 40 $ 13.00 40 $ 13.00 140 $ 12.00 165 $ 13.00 $ 2,145.00 $ $ $ $ Amount 2,665.00 520.00 520.00 1,680.00 140 $ 12.00 $ 1,680.00 Jan-25 140 $ 5 $ 12.00 13.00 $ $ 1,680.00 65.00 35 Jan-30 310 $ 11.50 $ 3,565.00 35 $ 35 $ 310 $ 345 13.00 13.00 11.50 $ $ $ $ 455.00 455.00 3,565.00 4,020.00 Total 450 $ 5,245.00 310 $ 3,890.00