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	230	units	@	$	15.50	=	$	3,565
Jan.	10		Sales										180	units	@	$	24.50
Jan.	20		Purchase	190	units	@	$	14.50	=		2,755
Jan.	25		Sales										220	units	@	$	24.50
Jan.	30		Purchase	360	units	@	$	14.00	=		5,040
			Totals	780	units					$	11,360		400	units

The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 380 units, where 360 are from the January 30 purchase, 5 are from the January 20 purchase, and 15 are from beginning inventory.

Required:
1. Determine the cost assigned to ending inventory and to cost of goods sold using a weighted average.
2. Determine the cost assigned to ending inventory and to cost of goods sold using FIFO.
3. Determine the cost assigned to ending inventory and to cost of goods sold using LIFO.

Determine the cost assigned to ending inventory and to cost of goods sold using weighted average. (Round cost per unit to 2 decimal places.)

1.
	Weighted Average - Perpetual: Goods Purchased Cost of Goods Sold Inventory Balance Date # of units Cost per unit # of units sold Cost per unit Cost of Goods Sold # of units Cost per unit Inventory Balance January 1 230 @ $15.50 = $3,565.00 January 10 January 20 Average cost January 25 January 30 Totals

Answer 1