Refer to sales and purchases data from Exercise 6-3 and record journal entries for Laker Company’s sales and purchases transactions. Assume for this assignment that the company uses a perpetual inventory system and FIFO. All sales and purchases are made on account, and no discounts are offered.

Data From Exercise 6-3

Laker Company reported the following January purchases and sales data for its only product.

Required

The company uses a perpetual inventory system. Determine the cost assigned to ending inventory and to cost of goods sold using 

(a) Specific identification, 

(b) Weighted average, 

(c) FIFO, 

(d) LIFO. 

(Round per unit costs and inventory amounts to cents.) For specific identification, ending inventory consists of 180 units from the January 30 purchase, 5 units from the January 20 purchase, and 15 units from beginning inventory.

Transcribed Image Text:

Date Activities Units Acquired at Cost Units Sold at Retail Beginning inventory.... 140 units @ $6.00 = $ 840 Jan. 1 Jan. 10 Sales ... 100 units @ $15 Jan. 20 Purchase... 60 units @ $5.00 = 300 Jan. 25 Sales .... 80 units @ $15 Jan. 30 Purchase.... 180 units @ $4.50 = 810 Totals ... 380 units $1,950 180 units