Question
Laker Company reported the following January purchases and sales data for its only product. For specific identification, ending inventory consists of 270 units from the
Laker Company reported the following January purchases and sales data for its only product. For specific identification, ending inventory consists of 270 units from the January 30 purchase, 5 units from the January 20 purchase, and 10 units from beginning inventory.
| Date | Activities | Units Acquired at Cost | Units sold at Retail | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| January 1 | Beginning inventory | 185 | units | @ | $ 11.00 | = | $ 2,035 | ||||
| January 10 | Sales | 145 | units | @ | $ 20.00 | ||||||
| January 20 | Purchase | 100 | units | @ | $ 10.00 | = | 1,000 | ||||
| January 25 | Sales | 125 | units | @ | $ 20.00 | ||||||
| January 30 | Purchase | 270 | units | @ | $ 9.50 | = | 2,565 | ||||
| Totals | 555 | units | $ 5,600 | 270 | units |
Exercise 5-6A (Algo) Periodic: Inventory costing LO P3
The Company uses a periodic inventory system. For specific identification, ending inventory consists of 270 units from the January 30 purchase, 5 units from the January 20 purchase, and 10 units 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.
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Auditing And Assurance Services An Integrated Approach
Authors: Arens, Elder, Beasley
9th Edition
0130646202, 9780130646200
