Question

Exercise 5-3 Perpetual: Inventory costing methods LO P1 [The following information applies to the questions displayed below.] 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 180 units @ $ 7.60 = $ 1,368 Jan. 10 Sales 105 units @ $ 15.60 Jan. 20 Purchase 250 units @ $ 6.60 = 1,650 Jan. 25 Sales 175 units @ $ 15.60 Jan. 30 Purchase 120 units @ $ 5.60 = 672 Totals 550 units $ 3,690 280 units Required: The company uses a perpetual inventory system. For specific identification, ending inventory consists of 270 units, where 120 are from the January 30 purchase, 80 are from the January 20 purchase, and 70 are from beginning inventory.

Required:

The company uses a perpetual inventory system. For specific identification, ending inventory consists of 270 units, where 120 are from the January 30 purchase, 80 are from the January 20 purchase, and 70 are from beginning inventory. Exercise 5-3 Part 1 1. Complete the table to determine the cost assigned to ending inventory and cost of goods sold using specific identification. (Round cost per unit to 2 decimal places.) Exercise 5-3 Part 2 2. Determine the cost assigned to ending inventory and to cost of goods sold using weighted average. (Round cost per unit to 2 decimal places.) Determine the cost assigned to ending inventory and to cost of goods sold using FIFO. (Round cost per unit to 2 decimal places.) Exercise 5-3 Part 4 4. Determine the cost assigned to ending inventory and to cost of goods sold using LIFO. (Round cost per unit to 2 decimal places.) Exercise 5-3 Part 1 1. Complete the table to determine the cost assigned to ending inventory and cost of goods sold using specific identification. (Round cost per unit to 2 decimal places.) Exercise 5-3 Part 2 2. Determine the cost assigned to ending inventory and to cost of goods sold using weighted average. (Round cost per unit to 2 decimal places.) Exercise 5-3 Part 3 3. Determine the cost assigned to ending inventory and to cost of goods sold using FIFO. (Round cost per unit to 2 decimal places.) Exercise 5-3 Part 4 4. Determine the cost assigned to ending inventory and to cost of goods sold using LIFO. (Round cost per unit to 2 decimal places.)

Answer 1

STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL SPECIFIC IDENTIFICATION METHOD
	RECIEPTS			COST OF GOODS SOLD			BALANCE
DATE	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
1-Jan	180	7.6	1368	110	7.6	836	70	7.6	532
Purchasse
20-Jan	250	6.6	1650	170	6.6	1122	80	6.6	528
30-Jan	120	5.6	672				120	5.6	672
TOTAL	550		3690	280		1958	270		1732
STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL WEIGHTED AVERAGE METHOD
	RECIEPTS			COST OF GOODS SOLD			BALANCE
DATE	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
1-Jan							180	7.6	1368
10-Jan				105	7.6	798	75	7.6	570
20-Jan	250	6.6	1650				75	7.6	570
							250	6.6	1650
AVERAGE							325	6.83	2220
25-Jan				175	6.83	1195	150	6.83	1025
30-Jan	120	5.6	672				150	6.83	1025
							120	5.6	672
AVERAGE							270	6.29	1697
TOTAL	370		2322	280		1993	270	6.29	1697
STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL FIFO METHOD
	RECIEPTS			COST OF GOODS SOLD			BALANCE
DATE	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
Jan							180	7.6	1368
10-Jan				105	7.6	798	75	7.6	570
20-Jan	250	6.6	1650				75	7.6	570
							250	6.6	1650
25-Jan				75	7.6	570
				100	6.6	660	150	6.6	990
30-Aug	120	5.6	672				150	6.6	990
							120	5.6	672
TOTAL	370		2322	280		2028	270		1662
STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL LIFO METHOD
	RECIEPTS			COST OF GOODS SOLD			BALANCE
DATE	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
Jan							180	7.6	1368
10-Jan				105	7.6	798	75	7.6	570
20-Jan	250	6.6	1650				75	7.6	570
							250	6.6	1650
25-Jan				175	6.6	1155	75	7.6	570
							75	6.6	495
30-Aug	120	5.6	672				75	7.6	570
							75	6.6	495
							120	5.6	672
TOTAL	370		2322	280		1953	270		1737
			Specific	Average	FIFO	LIFO
Ending inventory			1732	1697	1662	1737
Cost of goods sold			1958	1993	2028	1953
Req 2.
Periodic Inventory
STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC AVERAGE METHOD
	RECIEPTS			COST OF GOODS SOLD			BALANCE
DATE	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
1-Jan	180	7.6	1368
Purchasse
20-Jan	250	6.6	1650
30-Jan	120	5.6	672
TOTAL	550	6.71	3690	280	6.71	1879	270	6.71	1811
STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC SPECIFIC FIFO METHOD
	RECIEPTS			COST OF GOODS SOLD			BALANCE
DATE	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
1-Jan	180	7.6	1368	180	7.6	1368
Purchasse
20-Jan	250	6.6	1650	100	6.6	660	150	6.6	990
30-Jan	120	5.6	672				120	5.6	672
TOTAL	550		3690	280		2028	270		1662
STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC SPECIFIC LIFO METHOD
	RECIEPTS			COST OF GOODS SOLD			BALANCE
DATE	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
1-Jan	180	7.6	1368				180	7.6	1368
Purchasse
20-Jan	250	6.6	1650	160	6.6	1056	90	6.6	594
30-Jan	120	5.6	672	120	5.6	672
TOTAL	550		3690	280		1728	270		1962
			Average	FIFO	LIFO
Ending inventory			1811	1662	1962
Cost of goods sold			1879	2028	1728