Question

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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.

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 $
Balance Oct1	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-Jan	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-Jan	120	5.6	672				75	7.6	570
							75	6.6	495
							120	5.6	672
TOTAL	370		2322	280		1953	270		1737