Saved ry Assessment 3rd Attempt Lakeland Company uses a perpetual inventory syst

Question

Saved ry Assessment 3rd Attempt Lakeland Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for October Acquired at Cost Units Sold at Retail 220 units$53.40/unit 285 units ate Oct. 1 Beginning Oct. 5 Purchase Oct. 9 Sales Oct. 18 Purchase Oct.25 Purchase Oct.29 Sales 380 units $88.40/unit 270 units $6540/unit 250 units $98.40/unit Totals 920 units 630 units 3. Compute the cost assigned to ending inventory using (a) FFO (b)LIFO, (c) weighted average, and (d) specific identification. For specific identification, the October 9 sale consisted of 125 units from beginning inventory and 255 units from the October 5 purchase; the October 29 sale consisted of 105 units from the October 18 purchase and 145 units from the October 25 purchase. (Round your average cost per unit to 2 decimal places.) Perpetual FIFO Prev 17 18of 23 Next

Explanation / Answer

The cost assigned to ending inventory of 920-630=290 units, using: a) FIFO: starting from end 270*65.40+20*63.40= 18926 b) LIFO: starting from beginning lot-wise 125*53.40+20*65.40+145*63.40= 17176 c) Weighted Average: Total available cost / Total units = (55243/920) * 290 = 60.05 * 290 = $17414.50 d) Specific identification : (220-125)*53.40+(285-255)*58.40+(145-105)*63.40+(270-145)*65.40=17536

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