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	175	units	@	$	10.00	=	$	1,750
Jan.	10		Sales										135	units	@	$	19.00
Jan.	20		Purchase	130	units	@	$	9.00	=		1,170
Jan.	25		Sales										140	units	@	$	19.00
Jan.	30		Purchase	250	units	@	$	8.50	=		2,125
			Totals	555	units					$	5,045		275	units
The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 280 units, where 250 are from the January 30 purchase, 5 are from the January 20 purchase, and 25 are from beginning inventory. GIVE ANSWERS FOR TABLES BELOW- THE BOXES FILLED OUT ARE THE ONLY ONES THAT NEED NUMBERS

Specific Identification Available for Sale Cost of Goods Sold Ending Inventory Purchase Date Activity Units Unit Cost Units Sold Unit Cost COGS Ending Inventory- Units Cost Per Unit Ending Inventory- Cost Jan. 1 Beginning inventory 175 $1750.00 0 175 $1,750.00 $306,250 Jan. 20 Purchase 130 $1170.00 125 $1170.00 $146,250 5 $1,170.00 $5,850 Jan. 30 Purchase 250 $2125.00 250 $2125.00 $531,250 250 $2,125.00 $531,250 555 375 $677,500 430 $843,350

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 1 175 @ $10.00 = $1,750.00 January 10 135 @ $10.00 = $1,350.00 40 @ $10.00 = $400.00 January 20 130 @ $9.00 40 @ $10.00 = $400.00 130 @ $9.00 = 1,170.00 Average cost 170 @ $9.24 $1,570.00 January 25 140 @ $9.24 = $1,293.60 30 @ $9.24 = $277.20 January 30 250 @ $8.50 30 @ $9.24 = $277.20 250 @ $8.50 = 2,125.00 Totals $2,643.60 280 @ $8.58 $2,402.20

Answer 1

STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC SPECIFIC IDENTIFICATION METHOD
	RECIEPTS			COST OF GOODS SOLD			BALANCE
DATE	Activity	Units	Unit cost	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
1-Jan	Beg. Inv.	175	10	150	10	1500	25	10	250
20-Jan	Purchases	130	9	125	9	1125	5	9	45
30-Jan	Purchasses	250	8.5				250	8.5	2125
TOTAL	4800	555		275		2625	280		2420
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							175	10	1750
10-Jan				135	10	1350	40	10	400
20-Jan	130	9	1170				40	10	400
							130	9	1170
AVERAGE							170	9.24	1570
25-Jan				140	9.24	1294	30	9.24	276
30-Jan	250	8.5	2125				30	9.24	276
							250	8.5	2125
AVERAGE							280	8.575	2401
TOTAL	380		3295	275		2644	280	8.575	2401