Laker Company reported the following January purchases and sales data for its only product. The Company uses
Question:
Laker Company reported the following January purchases and sales data for its only product. The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 275 units from the January 30 purchase, 5 units from the January 20 purchase, and 25 units from beginning inventory.
Date | Activities | Units Acquired at Cost | Units sold at Retail | ||||||||
January 1 | Beginning inventory | 175 | units | @ | $ 10.00 | = | $ 1,750 | ||||
January 10 | Sales | 135 | units | @ | $ 19.00 | ||||||
January 20 | Purchase | 130 | units | @ | $ 9.00 | = | 1,170 | ||||
January 25 | Sales | 140 | units | @ | $ 19.00 | ||||||
January 30 | Purchase | 275 | units | @ | $ 7.00 | = | 1,925 | ||||
Totals | 580 | units | $ 4,845 | 275 | units |
Exercise 5-3 (Algo) 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.
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill