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 Ativities 3 .1 Beginning inventory Ja, s es Jan Pierce Jan. 25 Salat Purchase The Company uses a perpetual inventory system for specific identification ending inventory consists of 200 units where 180 are from the January 30 purchases are from the 20 purchase and 15 are from beginning inventory Required: 1. Complete the table to determine the cost assigned to ending Inventory and cost of os 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 osugned to ending inventory and to cost of goods sold using FIFO 4. Determine the cost assigned Sending nventory and to 05

Answer 1

ANSWER = 1
SPECIFIC IDENTIFICATION METHOD
		PURHASES			COST OF GOODS SOLD			ENDING INVENTORY
Date	Particulars	Units	Rate	Total	Units	Rate	Total	Units	Rate	Total
Jan, 01	Beginning inventory	140	$                           6.00	$                              840	125	$               6.00	$                 750	15	$           6.00	$                   90
Jan, 20	Purchases	60	$                           5.00	$                              300	55	$               5.00	$                 275	5	$           5.00	$                   25
Jan, 30	Purchases	180	$                           4.50	$                              810	0	$                    -	$                    -	180	$           4.50	$                 810
		380		$1,950	180		$1,025	200		$925
ANSWER = 2
WEIGHTED AVERAGE COST METHOD
		PURHASES			COST OF GOODS SOLD			ENDING INVENTORY
Date	Particulars	Units	Rate	Total	Units	Rate	Total	Units	Rate	Total
Jan, 01	Beginning inventory							140	$           6.00	$                 840
Jan, 10	Sales				100	$               6.00	$                 600	40	$           6.00	$                 240
Jan, 20	Purchases	60	$                           5.00	$                              300				100	$           5.40	$                 540
Jan, 25	Sales				80	$               5.40	$                 432	20	$           5.40	$                 108
Jan, 30	Purchases	180	$                           4.50	$                              810				200	$           4.59	$                 918
		240		$1,110	180		$1,032	200		$                 918
ANSWER = 3
FIFO METHOD
		PURHASES			COST OF GOODS SOLD			ENDING INVENTORY
Date	Particulars	Units	Rate	Total	Units	Rate	Total	Units	Rate	Total
Jan, 01	Beginning inventory							140	$           6.00	$                 840
Jan, 10	Sales				100	$               6.00	$                 600	40	$           6.00	$                 240
Jan, 20	Purchases	60	$                           5.00	$                              300				40	$           6.00	$                 240
								60	$           5.00	$                 300
Jan, 25	Sales				40	$               6.00	$                 240
					40	$               5.00	$                 200	20	$           5.00	$                 100
Jan, 30	Purchases	180	$                           4.50	$                              810				20	$           5.00	$                 100
								180	$           4.50	$                 810
		240		$1,110	180		$1,040	200		$                 910
ANSWER = 4
LIFO METHOD
		PURHASES			COST OF GOODS SOLD			ENDING INVENTORY
Date	Particulars	Units	Rate	Total	Units	Rate	Total	Units	Rate	Total
Jan, 01	Beginning inventory							140	$           6.00	$                 840
Jan, 10	Sales				100	$               6.00	$                 600	40	$           6.00	$                 240
Jan, 20	Purchases	60	$                           5.00	$                              300				40	$           6.00	$                 240
								60	$           5.00	$                 300
Jan, 25	Sales				60	$               5.00	$                 300
					20	$               6.00	$                 120	20	$           6.00	$                 120
Jan, 30	Purchases	180	$                           4.50	$                              810				20	$           6.00	$                 120
								180	$           4.50	$                 810
		240		$1,110	180		$1,020	200		$                 930