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Laker Company reported the following January purchases and sales data for its only product. For specific identification, ending inventory consists of 180 units from the
Laker Company reported the following January purchases and sales data for its only product. For specific identification, ending inventory consists of 180 units from the January 30 purchase, 5 units from the January 20 purchase, and 15 units from beginning inventory.
Date | Activities | Units Acquired at Cost | Units sold at Retail | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
January 1 | Beginning inventory | 140 | units | @ | $ 6.00 | = | $ 840 | ||||
January 10 | Sales | 100 | units | @ | $ 15 | ||||||
January 20 | Purchase | 60 | units | @ | $ 5.00 | = | 300 | ||||
January 25 | Sales | 80 | units | @ | $ 15 | ||||||
January 30 | Purchase | 180 | units | @ | $ 4.50 | = | 810 | ||||
Totals | 380 | units | $ 1,950 | 180 | units |
Exercise 5-3 (Static) Perpetual: Inventory costing methods LO P1
Assume the perpetual inventory system is used.
Required:
- Complete the table to determine the cost assigned to ending inventory and cost of goods sold using specific identification.
- Determine the cost assigned to ending inventory and to cost of goods sold using weighted average.
- Determine the cost assigned to ending inventory and to cost of goods sold using FIFO.
- Determine the cost assigned to ending inventory and to cost of goods sold using LIFO.
Step by Step Solution
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Step: 1
1 Now the table can be completed as follows Date Activities Units Acquired at Cost Units sold at Retail January 1 Beginning inventory 140 units 600 840 January 10 Sales 100 units 15 January 20 Purchas...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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