! Required information [The following information applies to the questions displayed below.] 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 150 units @ $7.50 = $1,125 Jan. 10 Sales 110 units @ $16.50 Jan. 20 Purchase 80 units @ $6.50 = 520 Jan. 25 Sales 90 units @ $16.50 Jan. 30 Purchase 200 units @ $6.00 = 1,200 Totals 430 units $2,845 200 units Required: The Company uses a periodic inventory system. For specific identification, ending inventory consists of 230 units, where 200 are from the January 30 purchase, 5 are from the January 20 purchase, and 25 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 (c) LIFO. Determine the cost assigned to ending inventory and to cost of goods sold using specific identification. For specific identification, ending inventory consists of 230 units, where 200 are from the January 30 purchase, 5 are from the January 20 purchase, and 25 are from beginning inventory. a) Specific Identification Cost of Goods Sold Ending Inventory Cost of Goods Available for Sale Cost of Cost # of Goods units per Available unit for Sale # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory Beginning inventory 150 $7.50 $ 1,125 125 $ 7.50 $ 938 25 $ 188 7.50 Purchases: Jan. 20 80 $6.50 520 75 $ 6.50 488 5 33 6.50 Jan. 30 200 $6.00 1,200 0 200 6.00 1,200 Total 430 $ 2,845 200 $ 1,426 230 $ 1,421 Determine the cost assigned to ending inventory and to cost of goods sold using weighted average. (Round cost per unit to 2 decimal places.) b) Weighted Average Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory # of units Average Cost Cost of Goods Available for Sale # of units sold Average Cost Cost of Goods Sold # of units in ending inventory Average Cost Ending Inventory per unit per Unit per unit 150 $ 1,125 Beginning inventory Purchases: Jan. 20 80 520 Jan. 30 200 1,200 Total 430 $ 6.00 X $ 2,845 200 $ 7.20 X $ 1,440 230 $ 6.11 X $ 1,405 Determine the cost assigned to ending inventory and to cost of goods sold using FIFO. c) FIFO Cost of Goods Sold Ending Inventory Cost of Goods Available for Sale Cost of Cost # of Goods units per Available unit for Sale # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory Beginning inventory 150 7.50 $ 1,125 110 X $ 7.50 $ 825 $ 150 X 7.50 $ 1,125 Purchases: Jan. 20 80 6.50 520 50 $ 6.50 325 80 520 6.50 $ 6.00 Jan. 30 200 6.00 1,200 0 200 1,200 Total 430 $ 2,845 160 $ 1,150 430 $ 2,845 Determine the cost assigned to ending inventory and to cost of goods sold using LIFO. d) LIFO Cost of Goods Sold Ending Inventory Cost of Goods Available for Sale Cost of Cost # of Goods units per Available unit for Sale # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory Beginning inventory 150 7.50 $ 1,125 110 X $ 7.50 $ 825 150 $ 7.50 $ 1,125 Purchases: Jan. 20 80 6.50 520 10 X $ 6.50 65 80 520 $ 6.50 $ 6.00 Jan. 30 200 6.00 1,200 0 200 1,200 Total 430 $ 2,845 120 $ 890 430 $ 2,845
