Question

PROBLEMS - CHAPTER 5 6 Some da Sovey HelpS 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 Required at Coat 220 units $14.50 - $3,190 Units sold at Retail Date Activities Jan. 1 Beginning inventory Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase Totals 170 units @ $23.50 170 unitse $13.50 - 2.295 200 units @ $23.50 $13.00 - 4.420 340 units 730 units 370 units The Company uses a perpetual Inventory system. For specific identification, ending inventory consists of 360 units, where 340 are from the January 30 purchase, 5 are from the January 20 purchase, and 15 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. Required 1 Required 2 Required 3 Required 4 < Prey 2 of 3 !! Next >

Answer 1

1	Specific Identification method:
	Cost assigned to ending inventory:
					$
	Jan 30. purchase		340 units at $ 13		4420
	Jan 20. purchase		5 units at $ 13.50		67.5
	Beginning inventory		15 units at $ 14.50		217.5
	Total				4705
	Cost of goods sold=Beginning inventory+Purchases-Ending inventory=3190+9905-4705=$ 8390
2	Weighted average method:
	Under weighted average inventory method,Inventory is valued at weighted average cost per unit
	Weighted average cost per unit=Total cost/Total quantity
		Goods purchased		Cost of goods sold			Inventory balance
	Date	# of units	Cost per unit	# of units sold	Cost per unit	Cost of goods sold	# of units	Cost per unit	Inventory balance
	Jan 1.						220	14.5	3190
	Jan 10.			170	14.5	2465	50	14.5	725
							(220-170)
	Jan 20.	170	13.5				50	14.5	725
							170	13.5	2295
	Average cost						220	13.73	3020
								(3020/220)
	Jan 25.			200	13.73	2746	20	13.73	274.6
							(220-200)
	Jan 30.	340	13				20	13.73	274.6
							340	13	4420
	Average cost						360	13.04	4694.6
								(4694.6/360)
	Total					5211
	Cost assigned to ending inventory=$ 4694.6
	Cost of goods sold=$ 5211
3	Under FIFO method,Goods purchased first are sold first.
		Goods purchased		Cost of goods sold			Inventory balance
	Date	# of units	Cost per unit	# of units sold	Cost per unit	Cost of goods sold	# of units	Cost per unit	Inventory balance
	Jan 1.						220	14.5	3190
	Jan 10.			170	14.5	2465	50	14.5	725
							(220-170)
	Jan 20.	170	13.5				50	14.5	725
							170	13.5	2295
	Jan 25.			200 units sold as follows
				50	14.5	725	20	13.5	270
				150	13.5	2025	(170-150)
				(200-50)
	Jan 30.	340	13				20	13.5	270
							340	13	4420
	Total					5215
	Cost assigned to ending inventory=270+4420=$ 4690
	Cost of goods sold=$ 5215
4	Under LIFO method,Goods purchased last are sold first.
		Goods purchased		Cost of goods sold			Inventory balance
	Date	# of units	Cost per unit	# of units sold	Cost per unit	Cost of goods sold	# of units	Cost per unit	Inventory balance
	Jan 1.						220	14.5	3190
	Jan 10.			170	14.5	2465	50	14.5	725
							(220-170)
	Jan 20.	170	13.5				50	14.5	725
							170	13.5	2295
	Jan 25.			200 units sold as follows
				170	13.5	2295	20	14.5	290
				30	14.5	435	(50-30)
				(200-170)
	Jan 30.	340	13				20	14.5	290
							340	13	4420
	Total					5195			4710
	Cost assigned to ending inventory=290+4420=$ 4710
	Cost of goods sold=$ 5195