Question

Exercise 5-3 Perpetual: Inventory costing methods LO P1

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	205	units	@	$	13.00	=	$	2,665
Jan.	10		Sales										165	units	@	$	22.00
Jan.	20		Purchase	140	units	@	$	12.00	=		1,680
Jan.	25		Sales										145	units	@	$	22.00
Jan.	30		Purchase	310	units	@	$	11.50	=		3,565
			Totals	655	units					$	7,910		310

The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 345 units, where 310 are from the January 30 purchase, 5 are from the January 20 purchase, and 30 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.

Answer 1