Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

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 210 units @ $ 13.50 = $ 2,835
Jan. 10 Sales 160 units @ $ 22.50
Jan. 20 Purchase 150 units @ $ 12.50 = 1,875
Jan. 25 Sales 160 units @ $ 22.50
Jan. 30 Purchase 320 units @ $ 12.00 = 3,840
Totals 680 units $ 8,550 320 units

Required:

The Company uses a periodic inventory system. For specific identification, ending inventory consists of 360 units, where 320 are from the January 30 purchase, 5 are from the January 20 purchase, and 35 are from beginning inventory. 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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

2 Principles Of Financial And Managerial Accounting

Authors: Pollard, Sherry T. Mills, Walter T. Harrison Jr.

0136009891, 978-0136009894

More Books

Students also viewed these Accounting questions