Question

P ELERISUOME 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 175 units@ $10.00 - $1,750 Units sold at Retail 135 units @ $19.00 Date Activities Jan. 1 Beginning inventory Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase Totals 130 units@ $ 9.00 = 250 units@ $ 8.50 = 555 units $19.00 1,170 2,125 $5,045 140 units 275 units The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 280 units. where 250 are from the January 30 purchase, 5 are from the January 20 purchase, and 25 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. Complete this question by entering your answers in the tabs below. < Prey 5 of 11 Next > o hulu N

Answer 1

SPECIFIC IDENTIFICATION
		PURHASES			COST OF GOODS SOLD			ENDING INVENTORY
Date	Particulars	Units	Rate	Total	Units	Rate	Total	Units	Rate	Total
Jan,01	Beginning inventory	175	$             10.00	$1,750	150	$             10.00	$1,500	25	$         10.00	$250
Jan,20	Purchases	130	$                9.00	$1,170	125	$               9.00	$1,125	5	$           9.00	$45
Jan, 30	Purchases	250	$                8.50	$2,125	0	$                    -	$0	250	$           8.50	$2,125
		555		$5,045	275		$2,625	280		$2,420
WEIGHTED AVERAGE METHOD
		PURHASES			COST OF GOODS SOLD			ENDING INVENTORY
Date	Particulars	Units	Rate	Total	Units	Rate	Total	Units	Rate	Total
Jan,01	Beginning inventory							175	$         10.00	$1,750
Jan,10	Sales				135	$             10.00	$1,350	40	$         10.00	$400
Jan,20	Purchases	130	$                9.00	$1,170				170	$           9.24	$1,570
Jan,25	Sales				140	$               9.24	$1,293	30	$           9.24	$277
Jan, 30	Purchases	250	$                8.50	$2,125				280	$           8.58	$2,402
		380		$3,295	275		$2,643	280		$2,402
FIFO - PERPETUAL METHOD
		PURHASES			COST OF GOODS SOLD			ENDING INVENTORY
Date	Particulars	Units	Rate	Total	Units	Rate	Total	Units	Rate	Total
Jan,01	Beginning inventory							175	$         10.00	$1,750
Jan,10	Sales				135	$             10.00	$1,350	40	$         10.00	$400
Jan,20	Purchases	130	$                9.00	$1,170				40	$         10.00	$400
								130	$           9.00	$1,170
Jan,25	Sales				40	$             10.00	$400
					100	$               9.00	$900	30	$           9.00	$270
Jan, 30	Purchases	250	$                8.50	$2,125				30	$           9.00	$270
								250	$           8.50	$2,125
		380		$3,295	275		$2,650	280		$2,395
LIFO - PERPETUAL METHOD
		PURHASES			COST OF GOODS SOLD			ENDING INVENTORY
Date	Particulars	Units	Rate	Total	Units	Rate	Total	Units	Rate	Total
Jan,01	Beginning inventory							175	$         10.00	$1,750
Jan,10	Sales				135	$             10.00	$1,350	40	$         10.00	$400
Jan,20	Purchases	130	$                9.00	$1,170				40	$         10.00	$400
								130	$           9.00	$1,170
Jan,25	Sales				130	$               9.00	$1,170
					10	$             10.00	$100	30	$         10.00	$300
Jan, 30	Purchases	250	$                8.50	$2,125				30	$         10.00	$300
								250	$           8.50	$2,125
		380		$3,295	275		$2,620	280		$2,425