Question

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 145 units @ $7.00 = $ 1,015 Jan. 10 Sales 105 units @ $16.00 Jan. 20 Purchase 70 units @ $6.00 = 420 Jan. 25 Sales 85 units @ $16.00 Jan. 30 Purchase 190 units @ $5.50 = 1,045 Totals 405 units $ 2,480 190 units

Required:

The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 215 units, where 190 are from the January 30 purchase, 5 are from the January 20 purchase, and 20 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. (Round weighted average cost per unit to 2 decimal places.)

	b) Weighted Average - Perpetual: Goods Purchased Cost of Goods Sold Inventory Balance Date # of units Cost per unit # of units sold Cost per unit Cost of Goods Sold # of units Cost per unit Inventory Balance January 1 @ January 10 @ @ January 20 @ @ @ Average cost @ January 25 @ @ January 30 @ @ @ Totals @

	c) Perpetual FIFO: Goods Purchased Cost of Goods Sold Inventory Balance Date # of units Cost per unit # of units sold Cost per unit Cost of Goods Sold # of units Cost per unit Inventory Balance January 1 @ January 10 @ @ January 20 @ @ @ January 25 @ @ @ @ January 30 @ @ @ @ Totals

	d) Perpetual LIFO: Goods Purchased Cost of Goods Sold Inventory Balance Date # of units Cost per unit # of units sold Cost per unit Cost of Goods Sold # of units Cost per unit Inventory Balance January 1 @ January 10 @ @ January 20 @ @ @ January 25 @ @ @ @ January 30 @ @ @ @ Totals

Answer 1

Answer b.

Answer c.

Answer d.