The following information applies to the questions displayed below. Laker Compan
ID: 2487608 • Letter: T
Question
The following information applies to the questions displayed below. 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 510 units, where 280 are from the January 30 purchase. 80 are from the January 20 purchase, and 150 are from beginning inventory. Determine the cost assigned to ending inventory and to cost of goods sold using FIFO. (Round cost per unit to 2 decimal places.)Explanation / Answer
Perpetual FIFO method
Date
Goods purchased
Cost of goods sold
Inventory balance
Jan-01
340 units @ $10.80
$ 3,672
Jan-10
185 units @ $10.80
$ 1,998
155 units @ $10.80
$ 1,674
Jan-20
410 units @ $9.80
$ 4,018
155 units @ $10.80
$ 1,674
410 units @ $9.80
$ 4,018
$ 5,692
Jan-25
155 units @ $10.80
$ 6,298
0 units @ $10.80
$ 0
180 units @ $9.80
$ 1,764
230 units @ $9.80
$ 2,254
$ 2,254
Jan-30
280 units @ $8.80
$ 2,464
0 units @ $10.80
$ 0
230 units @ $9.80
$ 2,254
280 units @ $8.80
$ 2,464
Totals
$ 10,060
$ 4,718
Date
Goods purchased
Cost of goods sold
Inventory balance
Jan-01
340 units @ $10.80
$ 3,672
Jan-10
185 units @ $10.80
$ 1,998
155 units @ $10.80
$ 1,674
Jan-20
410 units @ $9.80
$ 4,018
155 units @ $10.80
$ 1,674
410 units @ $9.80
$ 4,018
$ 5,692
Jan-25
155 units @ $10.80
$ 6,298
0 units @ $10.80
$ 0
180 units @ $9.80
$ 1,764
230 units @ $9.80
$ 2,254
$ 2,254
Jan-30
280 units @ $8.80
$ 2,464
0 units @ $10.80
$ 0
230 units @ $9.80
$ 2,254
280 units @ $8.80
$ 2,464
Totals
$ 10,060
$ 4,718
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