Question

In: Accounting

Required information Use the following information for the Exercises below. [The following information applies to the...

Required information

Use the following information for the Exercises below.

[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 @ $ 10.50 = $ 1,890
Jan. 10 Sales 140 units @ $ 19.50
Jan. 20 Purchase 110 units @ $ 9.50 = 1,045
Jan. 25 Sales 130 units @ $ 19.50
Jan. 30 Purchase 270 units @ $ 9.00 = 2,430
Totals 560 units $ 5,365 270 units

rev: 09_15_2017_QC_CS-99723

Exercise 5-5A Periodic: Inventory costing LO P3

Required:

The Company uses a periodic inventory system. For specific identification, ending inventory consists of 290 units, where 270 are from the January 30 purchase, 5 are from the January 20 purchase, and 15 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.
  

Solutions

Expert Solution

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 $
Jan-01 180 10.5 1890 165 10.5 1732.5 15 10.5 157.5
Purchasse
20-Jan 110 9.5 1045 105 9.5 997.5 5 9.5 47.5
30-Jan 270 9 2430 270 9 2430
TOTAL 560 5365 270 2730 290 2635
STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC AVERAGE METHOD
RECIEPTS COST OF GOODS SOLD BALANCE
DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $
Jan-01 180 10.5 1890
Purchasse
20-Jan 110 9.5 1045
30-Jan 270 9 2430
TOTAL 560 9.58 5365 270 9.58 2587 290 9.58 2778
STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC fIFO METHOD
RECIEPTS COST OF GOODS SOLD BALANCE
DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $
Jan-01 180 10.5 1890 180 10.5 1890
Purchasse
20-Jan 110 9.5 1045 90 9.5 855 20 9.5 190
30-Jan 270 9 2430 270 9 2430
TOTAL 560 5365 270 2745 290 2620
STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC LIFO METHOD
RECIEPTS COST OF GOODS SOLD BALANCE
DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $
Jan-01 180 10.5 1890 180 10.5 1890
Purchasse
20-Jan 110 9.5 1045 110 9.5 1045
30-Jan 270 9 2430 270 9 2430
TOTAL 560 5365 270 2430 290 2935
Specific Average FIFO LIFO
Ending inventory 2635 2778 2620 2935
Cost of goods sold 2730 2587 2745 2430

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