Required information [The following information applies to the questions display

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.

The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 410 units, where 380 are from the January 30 purchase, 5 are from the January 20 purchase, and 25 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.

Date Activities Units Acquired at Cost Units sold at Retail Jan. 1 Beginning inventory 240 units @ $ 16.50 = $ 3,960 Jan. 10 Sales 190 units @ $ 25.50 Jan. 20 Purchase 170 units @ $ 15.50 = 2,635 Jan. 25 Sales 190 units @ $ 25.50 Jan. 30 Purchase 380 units @ $ 15.00 = 5,700 Totals 790 units $ 12,295 380 units Required 1Required 2Required 3 Required4 Complete the table to determine the cost assigned to ending inventory and cost of goods sold using specific identification Available for Sale Cost of Goods Sold Ending Inventory Ending Ending Cost Per Inventory Units Purchase Date Activity Units Unit Cost Unit Cost CoGS Inventory Unit Units Cost Jan. 1 Jan. 20 Jan. 30 Beginning inventory Purchase Purchase 240 170 380 790

Explanation / Answer

Cost of goods sold and Ending inventory is as calculated below:

Specific identification Available for sale Cost of goods sold Ending Inventory units Purchase Date Activity Units Unit Cost Units Sold Unit Cost COGS Ending Inventory units Cost per unit Ending Inventory-Cost Jan-01 Beginning Inventory 240 16.5 240 16.5 3960 Jan-10 Sale 190 16.5 3135 50 16.5 825 Jan-20 Purchase 170 15.5 50 16.5 825 170 15.5 2635 Jan-25 Sales 25 16.5 412.5 25 16.5 412.5 165 15.5 2557.5 5 15.5 77.5 Jan-30 Purchase 380 15 25 16.5 412.5 5 15.5 77.5 380 15 5700 790 380 6105 410 6190 Weighted Average Available for sale Cost of goods sold Ending Inventory units Purchase Date Activity Units Unit Cost Units Sold Unit Cost COGS Ending Inventory units Cost per unit Ending Inventory-Cost Jan-01 Beginning Inventory 240 16.5 240 16.5 3960 Jan-10 Sale 190 16.5 3135 50 16.5 825 Jan-20 Purchase 170 15.5 220 15.73 3460 Jan-25 Sales 190 15.73 2988 30 15.73 472 Jan-30 Purchase 380 15 410 15.05 6172 790 380 6123 410 6172 FIFO Available for sale Cost of goods sold Ending Inventory units Purchase Date Activity Units Unit Cost Units Sold Unit Cost COGS Ending Inventory units Cost per unit Ending Inventory-Cost Jan-01 Beginning Inventory 240 16.5 240 16.5 3960 Jan-10 Sale 190 16.5 3135 50 16.5 825 Jan-20 Purchase 170 15.5 50 16.5 825 170 15.5 2635 Jan-25 Sales 50 16.5 825 140 15.5 2170 30 15.5 465 Jan-30 Purchase 380 15 30 15.5 465 380 15 5700 790 380 6130 410 6165 LIFO Available for sale Cost of goods sold Ending Inventory units Purchase Date Activity Units Unit Cost Units Sold Unit Cost COGS Ending Inventory units Cost per unit Ending Inventory-Cost Jan-01 Beginning Inventory 240 16.5 240 16.5 3960 Jan-10 Sale 190 16.5 3135 50 16.5 825 Jan-20 Purchase 170 15.5 50 16.5 825 170 15.5 2635 Jan-25 Sales 170 15.5 2635 20 16.5 330 30 16.5 495 Jan-30 Purchase 380 15 380 15 5700 30 16.5 495 790 380 6100 410 6195

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