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	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

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.

FILL IN:

Specific Identification
	Available for Sale			Cost of Goods Sold			Ending Inventory
Purchase Date	Activity	Units	Unit Cost	Units Sold	Unit Cost	COGS	Ending Inventory- Units	Cost Per Unit	Ending Inventory- Cost
Jan. 1	Beginning inventory	240
Jan. 20	Purchase	170
Jan. 30	Purchase	380
		790		0		$0	0		$0

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	240	$    16.50	$    3,960	215	$    16.50	$    3,548	25	$    16.50	$        413
	Jan-20	170	$    15.50	$    2,635	165	$    15.50	$    2,558	5	$    15.50	$          78
	Jan-30	380	$    15.00	$    5,700	0	$    15.00	$           -	380	$    15.00	$    5,700
	Total	790		12,295	380		6,105	410		6,190
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      (A) - (B)	Cost per unit	Ending Inventory
	Jan-01	240		$    3,960
	Jan-20	170		$    2,635
	Jan-30	380		$    5,700
	Total	790	$    15.56	12,295	380	$    15.56	5,913	410	15.56	6,380
	Weighted average rate	=	$12295 / 790
		=	$    15.56
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      (A) - (B)	Cost per unit	Ending Inventory
	Jan-01	240	$    16.50	$    3,960	240	$    16.50	$    3,960	-	$    16.50	$           -
	Jan-20	170	$    15.50	$    2,635	140	$    15.50	$    2,170	30	$    15.50	$        465
	Jan-30	380	$    15.00	$    5,700	0	$    15.00	$           -	380	$    15.00	$    5,700
	Total	790		12,295	380		6,130	410		6,165
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      (A) - (B)	Cost per unit	Ending Inventory
	Jan-01	240	$    16.50	$    3,960	0	$    16.50	$           -	240	$    16.50	$    3,960
	Jan-20	170	$    15.50	$    2,635	0	$    15.50	$           -	170	$    15.50	$    2,635
	Jan-30	380	$    15.00	$    5,700	380	$    15.00	$    5,700	-	$    15.00	$           -
	Total	790		12,295	380		5,700	410		6,595