Required information The following information applies to the questions displaye

Question

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 Activities Units sold at Retail 100 units e $ 15 80 units $15 Units Acquired at Cost an. 1 Beginning inventory an. 10 Sales an. 20 Purchase an. 25 Sales Jan. 30 Purchase 140 units $6.00 840 60 units $5.00380 180 units$4.50810 Totals 380 units $1,950 180 units The Company uses a perpetual Inventory system. For specific identification, ending inventory consists of 200 units, where 180 are from the January 30 purchase. 5 are from the January 20 purchase, and 15 are from beginning inventory 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

Explanation / Answer

Solution 1:

Ending inventory under specific identification method = (180*$4.50) + (5*$5) + (15*$6) = $925

Total cost of inventory available for sale = $1,950

Cost of goods sold under specific identification method = $1,950 - $925 = $1,025

Solution 2:

Solution 3:

Solution 4:

Computation of ending inventory COGS under Weighted Average Cost - Laker Company Date Beginning Inventory Purchase Cost of Goods Sold Ending Inventory Qty Rate Amount Qty Rate Amount Qty Rate Amount Qty Rate Amount 1-Jan 140 $6.00 $840 0 $0.00 $0 0 $0.00 $0 140 $6.00 $840.00 10-Jan 140 $6.00 $840 0 $0.00 $0 100 $6.00 $600 40 $6.00 $240.00 20-Jan 40 $6.00 $240 60 $5.00 $300 0 $0.00 $0 100 $5.40 $540.00 25-Jan 100 $5.40 $540 0 $0.00 $0 80 $5.40 $432 20 $5.40 $108 30-Jan 20 $5.40 $108 180 $4.50 $810 0 $0.00 $0 200 $4.59 $918 Total $1,032 $918

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