Only boxes with blue outline need to be answered Required information Use the fo
ID: 2590600 • Letter: O
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Only boxes with blue outline need to be answered
Required information Use the following information for the Exercises below [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 145 units$20.00 125 units$20.00 Units Acquired at Cost Date Jan. 1 Beginning inventory Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase 185 unitse $11.00-$2,035 100 units $10.00 1,000 270 unitse 9.50-2,565 Totals 555 units $5,600 270 units The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 285 units where 270 are from the January 30 purchase, 5 are from the January 20 purchase, and 10 are from beginning inventory Exercise 5-3 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 LIFOExplanation / Answer
1. Calculation of Ending Inventory using Specficiation method
Ending Inventory Cost : 2725
Available for sale
Cost of available for sale : 5600
Less : ending Inventory : -2725
Cost of Goods sold : 2875
2. Calculation of Ending Inventory using Weighted average method
Purchase Sold Balance
Cost of ending inventory : 2719.29
Cost of goods sold : 1595+1285.71= 2880.71
3. Calculation of Ending Inventory using FIFO
40*11=440
100*10=1000
40*11=440
85*10=850
15*10=150
270*9.5=2565
Cost of ending inventory : 150+2565= 2715
Cost of goods sold : 1595+440+850=2885
4. Calculation of Ending Inventory using LIFO
40*11=440
100*10=1000
100*10=1000
25*11=275
15*11=165
270*9.5=2565
Cost of ending inventory : 165+2565= 2730
Cost of goods sold : 1595+1000+275=2870
Date Units Unit Cost Total Jan,1 10 11 110 Jan,20 5 10 50 Jan,30 270 9.5 2565 Total 285 2725Related Questions
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