Chapter 6 Financial Accounting Principles 22nd edition

Author John Wild

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	140 units @$6.00= $840
Jan 10	Sales		100 units @$15.00
Jan 20	Purchase	60 units @ $5.00
Jan 25	Sales		80 units @$15.00

Jan 30	Purchase	180 units @$4.50= $810
	Totals	380 units $1,950	180 units

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, and (d) LIFO. (Round per unit costs and inventory amounts to cents). For specific identifications, 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.