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 Jan. 1 Beginning inventory Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase Totals Units Acquired at Cost Units sold at Retail 185 units @ $11.00 - $2,035 145 units @ $20.00 100 units @ $10.00 - 1,000 125 units @ $20.00 270 units @ $ 9.50 - 2,565 555 units $ 5,600 270 units Exercise 5-3 Periodic: Inventory costing methods LO P1 Required: The Company uses a periodic 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. 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

Specific identification method
	Cost of goods available for sale			Cost of goods sold			Ending inventory
	Units	cost per unit	Cost of goods availabe for sale($)	Units sold	cost per unit	Cost of goods sold ($)	units in ending inventory	cost per unit	Ending inventory ($)
Begening inventory	185	11	2035	175	11	1925	10	11	110
Purchases
Jan. 20	100	10	1000	95	10	950	5	10	50
Jan. 30	270	9.5	2565				270	9.5	2565
Total			5600			2875			2725
Weighted Average Method
	Cost of goods available for sale			Cost of goods sold			Ending inventory
	Units	cost per unit	Cost of goods availabe for sale($)	Units sold	cost per unit	Cost of goods sold ($)	units in ending inventory	cost per unit	Ending inventory ($)
Begening inventory	185	11	2035	145	11	1595	40	11	440
Purchases
Jan. 20	100	10	1000	125	10.29	1286.25	15	10.29	154.35
Jan. 30	270	9.5	2565				285	9.54	2718.90
Total			5600			2881.25			2718.90
FIFO Method
	Cost of goods available for sale			Cost of goods sold			Ending inventory
	Units	cost per unit	Cost of goods availabe for sale($)	Units sold	cost per unit	Cost of goods sold ($)	units in ending inventory	cost per unit	Ending inventory ($)
Begening inventory	185	11	2035	145	11	1595	40	11	440
Purchases
Jan. 20	100	10	1000	125		1290.00	15	10.00	150
Jan. 30	270	9.5	2565				270	9.5	2565
Total			5600			2885	285		2715
LIFO Method
	Cost of goods available for sale			Cost of goods sold			Ending inventory
	Units	cost per unit	Cost of goods availabe for sale($)	Units sold	cost per unit	Cost of goods sold ($)	units in ending inventory	cost per unit	Ending inventory ($)
Begening inventory	185	11	2035	145	11	1595	40	11	440
Purchases
Jan. 20	100	10	1000	125		1275.00	15	11.00	165
Jan. 30	270	9.5	2565				270	9.5	2565
Total			5600			2870	285		2730