Question

Use the following information for the Exercises below. [The following information applies to the questions displayed below) Laker Company reported the following January purchases and sales data for its only product Units sold at Retail Unite Mequired at Coat 140 units $6.00 - $ 840 100 units $15 Date Activities Jan. 1 Beginning inventory Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase 60 unita $5.00 300 80 units $15 $4.50 180 units 380 unita The Company uses a perpetual inventory system. 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 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Complete the table to determine the cost assigned to ending Inventory and cost of goods sold using specific identification. (Round cost per unit to 2 decimal places.) Specific Identification Available for Sale Cost of Goods Sold Purchase Date Activity Units Unit Cost ola Ending Inventory Ending Cost Par Ending Inventory inventory Units Cost Unit Cost COGS Beginning inventory Purchase Purchase < Prey 23 of 8 Next >

Answer 1

FIFO METHOD
		PURHASES			COST OF GOODS SOLD			CLOSING BALANCE
Date	Particulars	Units (A)	Rate Per unit	Total Cost	Units (A)	Rate Per unit	Total Cost	Units (A)	Rate Per unit	Total Cost
Jan, 01	Begnning 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
				40	$                      6.00	240
Jan, 25	Sales			40	$                      5.00	$200		20	$           5.00	$100
Jan, 30	Purchases	180	$                       4.50	$810				20	$           5.00	$100
								180	$           4.50	$810
LIFO METHOD
		PURHASES			COST OF GOODS SOLD			CLOSING BALANCE
Date	Particulars	Units (A)	Rate Per unit	Total Cost	Units (A)	Rate Per unit	Total Cost	Units (A)	Rate Per unit	Total Cost
Jan, 01	Begnning 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
				60	$                      5.00	$300
Jan, 25	Sales			20	$                      6.00	120		20	$           6.00	120
Jan, 30	Purchases	180	$                       4.50	$810				20	$           6.00	120
								180	$           4.50	$810
WEIGHTED AVG. METHOD
		PURHASES			COST OF GOODS SOLD			CLOSING BALANCE
Date	Particulars	Units (A)	Rate Per unit	Total Cost	Units (A)	Rate Per unit	Total Cost	Units (A)	Rate Per unit	Total Cost
Jan, 01	Begnning 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	$      540.00
Jan, 25	Sales				80	$               5.40	$432	20	$           5.40	$      108.00
Jan, 31	Purchases	180	$                       4.50	$810				200	$           4.59	$      918.00
		240		$1,110	180		$1,032	200		$918
SPECIFIC ID METHOD
		PURHASES			COST OF GOODS SOLD			CLOSING BALANCE
Date	Particulars	Units (A)	Rate Per unit	Total Cost	Units (A)	Rate Per unit	Total Cost	Units (A)	Rate Per unit	Total Cost
Jan, 01	Begnning 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, 31	Purchases	180	$                       4.50	$810				180	$           4.50	$810
		380		$                          1,950	180		$           1,025	200		925