Accounting 101- chapter 6

Required information 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 Units Acquired at Cost 175 units@ $10.00 - $1,750 Activities Jan. 1 Beginning inventory Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase 135 units @ $19.00 130 units@ $ 9.00 - 1,170 140 units @ $19.00 250 units@ $ 8.50 - 555 units 2,125 $5,045 Totals 275 units The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 280 units, where 250 are from the January 30 purchase, 5 are from the January 20 purchase, and 25 are from beginning inventory. Exercise 6-3 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. Specific Identification Available for Sale Cost of Goods Sold Purchase Date Ending Inventory Ending Ending Cost Per Inventory- Inventory- Unit Units Cost Activity Unit Cost Units Units Sold Unit Cost COGS Jan. 1 Jan. 20 Jan. 30 Beginning inventory Purchase Purchase 175 130 250 555 10 $ 0 ( Required 1 Required 2 > Weighted Average - Perpetual: Goods Purchased Inventory Balance # of Cost of Goods Sold Cost per Cost of Goods Sold # of units Cost per unit Date Cost per # of units Inventory Balance units sold unit unit January 1 175 @ $ 10.00 - $ 1,750.00 January 10 January 20 Average cost January 25 January 30 Totals Required 1 Required 3 > Perpetual FIFO: Goods Purchased Inventory Balance Cost of Goods Sold # of units Cost per Cost of Goods sold unit Sold Date # of units Cost per unit Cost per unit Inventory Balance # of units 175 @ January 1 $ 10.00 - $ 1,750.00 January 10 January 20 January 25 January 30 Totals Required 2 Required 4 > Perpetual LIFO: Goods Purchased # of Cost per units unit Cost of Goods Sold # of units Cost per Cost of Goods sold unit Sold Date Inventory Balance # of units Cost per Inventory unit Balance 175 @ $ 10.00 - $ 1,750.00 January 1 January 10 January 20 January 25 January 30 Totals