Question

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	165	units	@	$	9.00	=	$	1,485
Jan.	10	Sales										125	units	@	$	18.00
Jan.	20	Purchase	110	units	@	$	8.00	=		880
Jan.	25	Sales										125	units	@	$	18.00
Jan.	30	Purchase	250	units	@	$	7.50	=		1,875
		Totals	525	units					$	4,240		250	units

rev: 09_15_2017_QC_CS-99723

Required:

The Company uses a periodic inventory system. For specific identification, ending inventory consists of 275 units, where 250 are from the January 30 purchase, 5 are from the January 20 purchase, and 20 are from beginning inventory. Determine the cost assigned to ending inventory and to cost of goods sold using (a) specific identification, (b) weighted average, (c) FIFO, and (d) LIFO

Complete this questions by entering your answers in the below tabs.

• Specific Id

• Weighted Average
• FIFO
• LIFO

Determine the cost assigned to ending inventory and to cost of goods sold using specific identification. For specific identification, ending inventory consists of 275 units, where 250 are from the January 30 purchase, 5 are from the January 20 purchase, and 20 are from beginning inventory.

Determine the cost assigned to ending inventory and to cost of goods sold using weighted average.

b) Average Cost	Cost of Goods Available for Sale			Cost of Goods Sold			Ending Inventory
	# of units	Average Cost per unit	Cost of Goods Available for Sale	# of units sold	Average Cost per Unit	Cost of Goods Sold	# of units in ending inventory	Average Cost per unit	Ending Inventory
Beginning inventory
Purchases:
Jan. 20
Jan. 30
Total	0		$0			$0			$0

Answer 1

STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC SPECIFIC IDENTIFICATION METHOD
	RECIEPTS			COST OF GOODS SOLD			BALANCE
DATE	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
1-Jan	165	9	1485	145	9	1305	20	9	180
Purchasse
20-Jan	110	8	880	105	8	840	5	8	40
30-Jan	250	7.5	1875				250	7.5	1875
TOTAL	525		4240	250		2145	275		2095
STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC WEIGHTED AVERAGE METHOD
	RECIEPTS			COST OF GOODS SOLD			BALANCE
DATE	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
1-Jan	165	9	1485
Purchasse
20-Jan	110	8	880
30-Jan	250	7.5	1875
TOTAL	525	8.08	4240	250	8.08	2020	275	8.08	2220
STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC FIFO METHOD
	RECIEPTS			COST OF GOODS SOLD			BALANCE
DATE	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
1-Jan	165	9	1485	165	9	1485
Purchasse
20-Jan	110	8	880	85	8	680	25	8	200
30-Jan	250	7.5	1875				250	7.5	1875
TOTAL	525		4240	250		2165	275		2075
STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC LIFO METHOD
	RECIEPTS			COST OF GOODS SOLD			BALANCE
DATE	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
1-Jan	165	9	1485				165	9	1485
Purchasse
20-Jan	110	8	880				110	8	880
30-Jan	250	7.5	1875	250	7.5	1875
TOTAL	525		4240	250		1875	275		2365