Question

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.
  

Answer 1

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