Question

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. Date Activities Units Acquired at Cost Units sold at Retail Jan. 1 Beginning inventory 220 units@ $14.50 = $3,190 Jan. 10 Sales 170 units $23.50 Jan. 20 Purchase 170 units@ $13.50 = 2,295 Jan. 25 Sales 200 units @ $23.50 Jan. 30 Purchase 340 units@ $13.00 = 4,420 Totals 730 units $9,905 370 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.

Answer 1

1) calculation of cost of goods sold and ending inventory using specific identification :

date	goods purchased	cost of goods sold	ending inventory
	no. of units	cost per uit in $	no. of units	cost per uit in $	cost of goods sold in $	no. of units	cost per uit in $	inventory balance in $
jan. 1						220	14.50	3190
jan. 10			170	14.50	2465	50	14.50	725
jan. 20	170	13.50				50	14.50	725
						170	13.50	2295
jan. 25			35	14.50	507.5	15	14.50	217.50
			165	13.50	2227.5	5	13.50	67.5
jan. 30	340	13				15	14.50	217.50
						5	13.5	67.50
						340	13	4420
totals			370		5200	360		4705

2) calculation of cost of goods sold and ending inventory using weighted average method :

date	goods purchased	cost of goods sold	ending inventory
	no. of units	cost per uit in $	no. of units	cost per uit in $	cost of goods sold in $	no. of units	cost per uit in $	inventory balance in $
jan. 1						220	14.50	3190
jan. 10			170	14.50	2465	50	14.50	725
jan. 20	170	13.50				220	(725+2295)/220 = 13.73	3020
jan. 25			200	13.73	2746	20	13.73	274
jan. 30	340	13				360	(274+4420)/360 = 13.04	4694
totals			370		5211	360		4694

3) calculation of cost of goods sold and ending inventory using fifo method :

date	goods purchases	cost of goods sold	ending inventory
	no. of units	cost per uit in $	no. of units	cost per uit in $	cost of goods sold in $	no. of units	cost per uit in $	inventory balance in $
jan. 1						220	14.50	3190
jan. 10			170	14.50	2465	50	14.50	725
jan. 20	170	13.50				50	14.50	725
						170	13.50	2295
jan. 25			50	14.50	725	20	13.50	270
			150	13.50	2025
jan. 30	340	13				20	13.50	270
						340	13	4420
totals			370		5215	360		4690

4) calculation of cost of goods sold and ending inventory using lifo method :

date	goods purchased	cost of goods sold	ending inventory
	no. of units	cost per uit in $	no. of units	cost per uit in $	cost of goods sold in $	no. of units	cost per uit in $	inventory balance in $
jan. 1						220	14.50	3190
jan. 10			170	14.50	2465	50	14.50	725
jan. 20	170	13.50				50	14.50	725
						170	13.50	2295
jan. 25			170	13.50	2295	20	14.50	290
			30	14.50	435
jan. 30	340	13				20	14.50	290
						340	13	4420
totals			370		5195	360		4710

cost of goods sold andending inventory :

methods	cost of goods sold	ending inventory
spcific identification	$5200	$4705
weighted average method	$5211	$4694
fifo method	$5215	$4690
lifo method	$5195	$4710

note :

total of ending inventory as on only January 30 = 20 units @ $14.50 and 340 units @ $13
so total units of ending inventory = 20 + 340 = 360 units
ending inventory in units = total available units - units sold
ending inventory in units = 730 - 370 = 360 units
and 360 units ending inventory always remain in each of four methods
so ending inventory will be 360 units (20 + 340 ) in using lifo method

thank you

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