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 Date Activities Units Acquired at Cost Units sold at Retail Jan. 1 Beginning inventory 155 units $8.00 - $1,240 Jan. 10 Sales 115 units $17.00 Jan. 20 Purchase 90 units $7.00 - 630 Jan. 25 Sales 95 units $17.00 Jan. 30 Purchase 210 unitse $6.50- 1,365 Totals 455 units $3,235 210 units Required: The Company uses a periodic inventory system. For specific identification, ending inventory consists of 245 units, where 210 are from the January 30 purchase. 5 are from the January 20 purchase, and 30 are from beginning inventory. Determine the cost assigned to ending inventory and to cost of goods sold using (c) specific identification, (b) weighted average. (FIFO, and (c) LIFO. Complete this questions by entering your answers in the below tabs. Specific Id Weighted Average FIFO UFO

Answer 1

• Requirements

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	155	$                   8.00	$                        1,240.00	125	$                 8.00	$                 1,000.00	30	$                   8.00	$                240.00
Purchases:
20-Jan	90	$                   7.00	$                            630.00	85	$                 7.00	$                     595.00	5	$                   7.00	$                  35.00
30-Jan	210	$                   6.50	$                        1,365.00	0	$                 6.50	$                              -	210	$                   6.50	$            1,365.00
TOTAL	455		$                        3,235.00	210		$                 1,595.00	245		$            1,640.00
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	155	$                   8.00	$                        1,240.00
Purchases:
20-Jan	90	$                   7.00	$                            630.00
30-Jan	210	$                   6.50	$                        1,365.00
TOTAL	455	$              7.1099	$                        3,235.00	210	$             7.1200	$                 1,495.20	245	$              7.1200	$            1,744.40

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	155	$                   8.00	$                        1,240.00	155	$                 8.00	$                 1,240.00	0	$                   8.00	$                         -
Purchases:
20-Jan	90	$                   7.00	$                            630.00	55	$                 7.00	$                     385.00	35	$                   7.00	$                245.00
30-Jan	210	$                   6.50	$                        1,365.00	0	$                 6.50	$                              -	210	$                   6.50	$            1,365.00
TOTAL	455		$                        3,235.00	210		$                 1,625.00	245		$            1,610.00
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	155	$                   8.00	$                        1,240.00	0	$                 8.00	$                              -	155	$                   8.00	$            1,240.00
Purchases:
20-Jan	90	$                   7.00	$                            630.00	0	$                 7.00	$                              -	90	$                  7.00	$                630.00
30-Jan	210	$                   6.50	$                        1,365.00	210	$                 6.50	$                 1,365.00	0	$                   6.50	$                         -
TOTAL	455		$                        3,235.00	210		$                 1,365.00	245		$            1,870.00