Question

Laker Company reported the following January purchases and sales data for its only product. Date Activities Units Acquired at Cost Exercise 6-3 Perpetual: Inventory costing methods P1 Units Sold at Retail 140 units @ $6.00 = $ 840 100 units @ $15 Jan. 1 Jan. 10 Jan. 20 Jan. 25 Jan. 30 Beginning inventory ... Sales... Purchase .. Sales..... Purchase .. Totals 60 units @ $5.00 = 300 80 units @ $15 180 units @ $4.50 = 810 380 units $1,950 180 units Required The company uses a perpetual inventory system. 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. (Round per unit costs and inventory amounts to cents.) For specific identification, ending inventory consists of 200 units, where 180 are from the January 30 purchase, 5 are from the January 20 purchase, and 15 are from beginning inventory Check Ending invento LIFO, $930: WA,$918

Answer 1

Perpetual Inventory System Helps us to Value Inventory

Before going through answer read below points so they will give more clarification

1.I have provide answer in Debit-Credit Form and after each transaction you will get Closing and Opening Balance.

2.Final Answers are Highlighted in GREEN Color and total column color in Light Blue Color

Summary of Answer is as Under :

Specific Identification Method - $925

Weighted Average Method - $918

FIFO - $910

LIFO -$930

1.Specific Identification Method - It is Simple ..which means rate at which quantity purchased which exist at closing stock must be value at actual purchase rate.and question provided us information as under :

Specific Identification Method
Qty	Rate ($)	Amount
180	4.5	810
5	5	25
15	6	90
Total Closing Stock Value		925

2.WEIGHTED AVERAGE METHOD - In this Method stock valued at Weighted Average Rate

WEIGHTED AVERAGE METHOD
Date	Particular (Debit)	Qty	Rate ($)	Amount	Date	Particular (Credit)	Qty	Rate ($)	Amount
01/01/XXXX	Opening Inventory	140	6	840	10/01/XXXX	Sales	100	6	600
						Closing Balance	40	6	240
	Total	140		840		Total	140		840
	Opening Balance	40	6	240
20/01/XXXX	Purchase	60	5	300		Closing Balance	100	5.4	540
	Total	100		540		Total	100		540
	Opening Balance	100	5.4	540	25/01/XXXX	Sales	80	5.4	432
						Closing Balance	20	5.4	108
	Total	100		540		Total	100		540
	Opening Balance	20	5.4	108	31/01/XXXX	Closing Balance	200	4.59	918
30/01/XXXX	Purchase	180	4.5	810
	Total	200		918			200		918

3.FIFO Method - in this Method Stock which is first purchase is deemed as first consumed

FIFO
Date	Particular (Debit)	Qty	Rate ($)	Amount	Date	Particular (Credit)	Qty	Rate ($)	Amount
01/01/XXXX	Opening Inventory	140	6	840	10/01/XXXX	Sales	100	6	600
						Closing Balance	40	6	240
	Total	140		840		Total	140		840
	Opening Balance	40	6	240		Closing Balance-1	40	6	240
20/01/XXXX	Purchase	60	5	300		-2	60	5	300
	Total	100		540		Total	100		540
	Opening Balance	40	6	240	25/01/XXXX	Sales	40	6	240
		60	5	300			40	5	200
						Closing Balance	20	5	300
	Total	100		540		Total	100		540
	Opening Balance	20	5	100	31/01/XXXX	Closing Balance-1	20	5	100
30/01/XXXX	Purchase	180	4.5	810	31/01/XXXX	-2	180	4.5	810
	Total	200		910			200		910

4. LIFO Method - In this method Stock which is Purchase last will be sold first

LIFO
Date	Particular (Debit)	Qty	Rate ($)	Amount	Date	Particular (Credit)	Qty	Rate ($)	Amount
01/01/XXXX	Opening Inventory	140	6	840	10/01/XXXX	Sales	100	6	600
						Closing Balance	40	6	240
	Total	140		840		Total	140		840
	Opening Balance	40	6	240		Closing Balance-1	40	6	240
20/01/XXXX	Purchase	60	5	300		-2	60	5	300
	Total	100		540		Total	100		540
	Opening Balance	40	6	240	25/01/XXXX	Sales	60	5	300
		60	5	300			20	6	120
						Closing Balance	20	6	120
	Total	100		540		Total	100		540
	Opening Balance	20	6	120	31/01/XXXX	Closing Balance-1	20	6	120
30/01/XXXX	Purchase	180	4.5	810	31/01/XXXX	-2	180	4.5	810
	Total	200		930			200		930