Question

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 220 units $14.50 - $3,190 Units sold at Retail 170 units @ $23.50 Date Activities Jan. 1 Beginning inventory Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase Totals 170 units@ $13.50 - 2,295 200 units @ $23.50 340 unitse $13.00 - 730 units 4,420 $9,905 370 units The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 360 units, whe 340 are from the January 30 purchase, 5 are from the January 20 purchase, and 15 are from beginning inventory. Exercise 5-3 Perpetual: Inventory costing methods LO P1 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.

Answer 1

Answer 1.

Available for Sale Cost of Goods Sold Ending Inventory Purchase Date Activity Units Unit Cost Units Unit Cost Total Cost Units Unit Cost Total Cost 220 205 15 January 01 Beginning Inventory January 20 Purchase January 30 Purchase 14.50 13.50 13.00 2972.5 2227.5 170 14.50 13.50 13.00 14.50 13.50 165 217.5 67.5 4420 340 13.00 340 360 730 370 5200 4705

Answer 2.

Date Goods Purchased Cost per # of units unit Cost of Goods Sold Cost per Cost of # of units unit Goods Sold Jan. 01 Jan. 10 Jan. 20 170 14.50 2465 50 725 170 13.50 Inventory Balance Cost per Inventory # of units unit Balance 220 14.50 3190 14.50 50 14.50 725 170 13.50 2295 220 13.73 3020 20 13.73 274 20 13.73 274 340 13.00 4420 360 4694 Average Jan. 25 Jan. 30 200 13.73 2746 340 13.00 Total 370 5211

Answer 3.

Date Goods Purchased # of units Cost per unit Cost of Goods Sold # of units Cost per Cost of unit Goods Sold Jan. 01 Jan. 10 Jan. 20 170 14.50 2465 170 13.50 50 Inventory Balance Cost per Inventory # of units unit Balance 220 14.50 3190 50 14.50 725 14.50 725 170 13.50 2295 0 14.500 13.50 270 20 13.50 270 340 13.00 4420 360 4690 Jan. 25 50 150 14.50 13.50 725 2025 20 Jan. 30 340 13.00 Total 370 5215

Answer 4.

Date Goods Purchased Cost per # of units unit Cost of Goods Sold Cost per Cost of # of units unit Goods Sold Jan. 01 Jan. 10 Jan. 20 170 14.50 2465 170 13.50 Inventory Balance Cost per Inventory #of units unit Balance 220 14.50 3190 50 14.50 725 50 14.50 725 13.50 2295 14.50 290 0 13.50 20 14.50 290 340 13.00 4420 360 4710 170 Jan. 25 30 170 14.50 13.50 435 2295 0 Jan. 30 340 13.00 Total 370 5195