Question

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Item 1

Item 1 Part 1 of 2 1.66 points

Required information

Use the following information for the Exercises below.

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Laker Company reported the following January purchases and sales data for its only product.

Date			Activities	Units Acquired at Cost								Units sold at Retail
Jan.	1		Beginning inventory	155	units	@	$	8.00	=	$	1,240
Jan.	10		Sales										115	units	@	$	17.00
Jan.	20		Purchase	90	units	@	$	7.00	=		630
Jan.	25		Sales										95	units	@	$	17.00
Jan.	30		Purchase	210	units	@	$	6.50	=		1,365
			Totals	455	units					$	3,235		210	units

The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 245 units, where 210 are from the January 30 purchase, 5 are from the January 20 purchase, and 30 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 a 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.

Answer 1

1		Cost of goods available for sale			Cost of goods sold			Ending Inventory
	Specific Identification	# of units    (A)	Cost per unit	Cost of goods available for sale	# of units sold               (B)	Cost per unit	Cost of goods sold	# of units in ending inventory	Cost per unit	Ending Inventory
	Jan-01	155	$         8.00	$        1,240	125	$         8.00	$       1,000	30	$       8.00	$              240
	Jan-20	90	$         7.00	$           630	85	$         7.00	$           595	5	$       7.00	$                35
	Jan-30	210	$         6.50	$        1,365	-	$         6.50	$              -	210	$       6.50	$          1,365
	Total	455		$        3,235	210		$       1,595	245		$          1,640
2		Cost of goods available for sale			Cost of goods sold			Ending Inventory
	Weighted - Average	# of units    (A)	Cost per unit	Cost of goods available for sale	# of units sold               (B)	Cost per unit	Cost of goods sold	# of units in ending inventory	Cost per unit	Ending Inventory
	Jan-01							155	$       8.00	$          1,240
	Jan-10				115	$         8.00	$           920	40	$       8.00	$              320
	Jan-20	90	$         7.00	$           630				40	$       8.00	$              320
								90	$       7.00	$              630
								130	$       7.31	950
	Jan-25				95	$         7.31	$           694	35	$       7.31	$              256
	Jan-30	210	$         6.50	$        1,365				35	$       7.31	$              256
								210	$       6.50	$          1,365
	Total	300		$        1,995	210		$       1,614	245	$       6.62	$          1,621
3		Cost of goods available for sale			Cost of goods sold			Ending Inventory
	FIFO	# of units    (A)	Cost per unit	Cost of goods available for sale	# of units sold               (B)	Cost per unit	Cost of goods sold	# of units in ending inventory	Cost per unit	Ending Inventory
	Jan-01							155	$       8.00	$          1,240
	Jan-10				115	$         8.00	$           920	40	$       8.00	$              320
	Jan-20	90	$         7.00	$           630				40	$       8.00	$              320
								90	$       7.00	$              630
	Jan-25				40	$         8.00	$           320	35	$       7.00	$              245
					55	$         7.00	$           385
	Jan-30	210	$         6.50	$        1,365				35	$       7.00	$              245
								210	$       6.50	$          1,365
	Total	300		$        1,995	210		$       1,625	245		$          1,610
4		Cost of goods available for sale			Cost of goods sold			Ending Inventory
	LIFO	# of units    (A)	Cost per unit	Cost of goods available for sale	# of units sold               (B)	Cost per unit	Cost of goods sold	# of units in ending inventory	Cost per unit	Ending Inventory
	Jan-01							155	$       8.00	$          1,240
	Jan-10				115	$         8.00	$           920	40	$       8.00	$              320
	Jan-20	90	$         7.00	$           630				40	$       8.00	$              320
								90	$       7.00	$              630
	Jan-25				90	$         7.00	$           630	35	$       8.00	$              280
					5	$         8.00	$             40
	Jan-30	210	$         6.50	$        1,365				35	$       8.00	$              280
								210	$       6.50	$          1,365
	Total	300		$        1,995	210		$       1,590	245		$          1,645