Refer to Exercise 6-1 and assume the periodic inventory system is used. Determine the costs assigned to ending inventory and to cost of goods sold using

(a) specific identification,

(b) weighted average,

(c) FIFO, and

(d) LIFO.

Exercise 6-1

Lakia Corporation reported the following current-year purchases and sales data for its only product:

Lakia uses a perpetual inventory system. Ending inventory consists of 500 units, 400 from the July 28 purchase and 100 from the December 19 purchase. 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.

Transcribed Image Text:

Date Activities Units Acquired at Cost Units Sold at Retail Jan. | Beginning inventory 120 units @ $6.00 $ 720 Jan. 10 Sales... 70 units @ $15 Mar. 7 Purchase 200 units @ $5.50 = 1,100 Mar. 15 Sales 125 units @ $15 July 28 Purchase 500 units @$5.00 = 2,500 Oct. 3 Purchase 375 units @ $4.40 = 1,650 Oct. 5 Sales 600 units @$15 Dec. 19 Purchase 100 units @ $4.10 410 Totals 1,295 units $6,380 795 units