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

165

units

@

$

9.00

=

$

1,485

Jan.

10

Sales

125

units

@

$

18.00

Jan.

20

Purchase

110

units

@

$

8.00

=

880

Jan.

25

Sales

125

units

@

$

18.00

Jan.

30

Purchase

250

units

@

$

7.50

=

1,875

Totals

525

units

$

4,240

250

units

rev: 09_15_2017_QC_CS-99723

Required:

The Company uses a periodic inventory system. For specific identification, ending inventory consists of 275 units, where 250 are from the January 30 purchase, 5 are from the January 20 purchase, and 20 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

Complete this questions by entering your answers in the below tabs.

  • Specific Id
  • Weighted Average
  • FIFO
  • LIFO

Determine the cost assigned to ending inventory and to cost of goods sold using specific identification. For specific identification, ending inventory consists of 275 units, where 250 are from the January 30 purchase, 5 are from the January 20 purchase, and 20 are from beginning inventory.

Determine the cost assigned to ending inventory and to cost of goods sold using weighted average.

b) Average Cost

Cost of Goods Available for Sale

Cost of Goods Sold

Ending Inventory

# of units

Average Cost per unit

Cost of Goods Available for Sale

# of units sold

Average Cost per Unit

Cost of Goods Sold

# of units in ending inventory

Average Cost per unit

Ending Inventory

Beginning inventory

Purchases:

Jan. 20

Jan. 30

Total

0

$0

$0

$0

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

Step: 3

blur-text-image

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

Internal Auditing A Guide For The New Auditor

Authors: David Galloway

3rd Edition

0894136917, 9780894136917

More Books

Students also viewed these Accounting questions