Question
Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below.] Laker Company reported the following January
Required information
Use the following information for the Exercises below.
[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 | ||||||||||||
The Company uses a perpetual 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.
rev: 03_14_2019_QC_CS-162819
Exercise 5-3 Perpetual: Inventory costing methods LO P1
Required: 1. Complete the table to determine the cost assigned to ending inventory and cost of goods sold using specific identification. 2. Determine the cost assigned to ending inventory and to cost of goods sold using weighted average. 3. Determine the cost assigned to ending inventory and to cost of goods sold using FIFO. 4. Determine the cost assigned to ending inventory and to cost of goods sold using LIFO.
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Specific Identification Available for Sale Cost of Goods Sold Ending Inventory Ending Inventory- Units Ending Inventory- Cost Unit Cost Units Sold Cost Per Unit Purchase Date Activity Units Unit Cost COGS Beginning inventory $ Jan. 1 150 $ 7.50 110 7.50 825 25 $ 7.50 188 Jan. 20 Purchase 80 $ 6.50 585 6.50 $ 33 90 6.50 5 6.00 S $ Jan. 30 Purchase 200 200 6.00 1,200 430 200 $ 1,410 $ 230 1,421 Weighted Average Perpetual: Goods Purchased Cost of Goods Sold Inventory Balance #of Cost per unit Cost per unit Cost of Cost per unit #of Inventory Balance Date units sold # of units units Goods Sold 150@ $1,125.00 January 1 7.50 $ 16.50 125@ 110@ $1,815.00 830.00 January 10 6.64 80 @ $ 125@ 830.00 January 20 6.50 6.64 $ 6.50 80 @ 520.00 205@ $1,350.00 Average cost $ 16.50 90@ $1,485.00 January 25 = January 30 200@ 6.00 1,200.00 200 @ 6.00 200@ $3,300.00 Totals Perpetual FIFO: Inventory Balance Goods Purchased Cost of Goods Sold Cost per unit #of units sold Cost per unit Cost of Goods Sold Cost per unit #of Inventory Balance #of units Date units $ 7.50 150 January 1 = 1,125.00 January 10 January 20 January 25 January 30 Totals Determine the cost assigned to ending inventory and to cost of goods sold using LIFO. Perpetual LIFO: Cost of Goods Sold Goods Purchased Inventory Balance Cost per #of units Cost per Cost of Goods unit Cost per unit #of units Inventory Balance # of units Date Sold unit sold $ $ 7.50 150 January 1 1,125.00 January 10 January 20 January 25 January 30 TotalsStep by Step Solution
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