heducat Question 7 (of 10) value 10.00 points Exercise 5-5A Periodic: Inventory
ID: 2397498 • Letter: H
Question
heducat Question 7 (of 10) value 10.00 points Exercise 5-5A Periodic: Inventory costing LO P Laker Company reported the following January purchases and sales data for its only product Units Sold at Retail 100 units @$15 80 units @S15 Activities Date Jan. 1 Beginning inventory 140 units@$6.00 840 Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase 60 units $5.00 300 180 units@ $4.50810 380 units Totals 1,950 180 units Laker uses a periodic inventory system. For specific identification, ending inventory consists of 200 units, where 180 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, (Round cost per unit to 3 decimal places.)Explanation / Answer
(1) Specific Identification :-
Specific Identification
Cost of Goods Available for Sale
Cost of Goods Sold
Ending Inventory
# of units
Cost pu
Cost of Goods Available for Sale
# of units
Cost pu
Cost of Goods Sold
# of units
Cost pu
Ending Inventory
Beginning Inventory
140
6
840
125
6
750
15
6
90
Purchases:-
Jan 20
60
5
300
55
5
275
5
5
25
Jan 30
180
4.50
810
-
4.50
-
180
4.50
810
Total
380
1950
180
1025
200
925
(2) Average cost :-
Average cost
Cost of Goods Available for Sale
Cost of Goods Sold
Ending Inventory
# of units
Cost pu
Cost of Goods Available for Sale
# of units
Cost pu
Cost of Goods Available for Sale
# of units
Cost pu
Cost of Goods Available for Sale
Beginning Inventory
140
6
840
180 5.13 924
200 5.13 1026
Purchases:-
Jan 20
60
5
300
Jan 30
180
4.50
810
Total
380
1950
180
924
200
1026
Avg cost per unit = Total cost available for sale/No of units available for sale
= 1950/380 = 5.13
(3) Periodic FIFO :-
FIFO
Cost of Goods Available for Sale
Cost of Goods Sold-Periodic FIFO
Ending Inventory-Periodic FIFO
# of units
Cost pu
Cost of Goods Available for Sale
# of units
Cost pu
Cost of Goods Sold-Periodic FIFO
# of units
Cost pu
Ending Inventory-Periodic FIFO
Beginning Inventory
140
6
840
140
6
840
-
6
-
Purchases:-
August 8
60
5
300
40
5
200
20
5
100
August 18
180
4.50
810
-
4.50
-
180
4.50
810
Total
380
1950
180
1040
200
910
(4) Periodic LIFO :-
LIFO
Cost of Goods Available for Sale
Cost of Goods Sold-Periodic LIFO
Ending Inventory-Periodic LIFO
# of units
Cost pu
Cost of Goods Available for Sale
# of units
Cost pu
Cost of Goods Sold-Periodic LIFO
# of units
Cost pu
Ending Inventory-Periodic LIFO
Beginning Inventory
140
6
840
-
6
-
140
6
840
Purchases:-
August 8
60
5
300
-
5
-
60
5
300
August 18
180
4.50
810
180
4.50
810
-
4.50
-
Total
380
1950
180
810
200
1140
Specific Identification
Cost of Goods Available for Sale
Cost of Goods Sold
Ending Inventory
# of units
Cost pu
Cost of Goods Available for Sale
# of units
Cost pu
Cost of Goods Sold
# of units
Cost pu
Ending Inventory
Beginning Inventory
140
6
840
125
6
750
15
6
90
Purchases:-
Jan 20
60
5
300
55
5
275
5
5
25
Jan 30
180
4.50
810
-
4.50
-
180
4.50
810
Total
380
1950
180
1025
200
925
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