Use the following information for the Exercises below. [The following informatio
ID: 2402129 • Letter: U
Question
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
140
units
@
$
6.00
=
$
840
Jan.
10
Sales
100
units
@
$
15
Jan.
20
Purchase
60
units
@
$
5.00
=
300
Jan.
25
Sales
80
units
@
$
15
Jan.
30
Purchase
180
units
@
$
4.50
=
810
Totals
380
units
$
1,950
180
units
The Company uses a perpetual 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.
Exercise 6-3 Perpetual: Inventory costing methods LO P1
Required:
1. Complete the table to determine the cost assigned to ending inventory and cost of goods sold using specific identification.
2. Determine the cost assigned to ending inventory and to cost of goods sold using weighted average.
3. Determine the cost assigned to ending inventory and to cost of goods sold using FIFO.
4. Determine the cost assigned to ending inventory and to cost of goods sold using LIFO.
Required 3
Required 4
Complete the table to determine the cost assigned to ending inventory and cost of goods sold using specific identification.
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
140
Jan. 20
Purchase
60
Jan. 30
Purchase
180
380
0
$0
0
$0
Determine the cost assigned to ending inventory and to cost of goods sold using weighted average. (Round cost per unit to 2 decimal places.)
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
140
@
$6.00
=
$840.00
January 10
January 20
Average cost
January 25
January 30
Totals
Determine the cost assigned to ending inventory and to cost of goods sold using FIFO.
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
140
@
$6.00
=
$840.00
January 10
January 20
January 25
January 30
Totals
Determine the cost assigned to ending inventory and to cost of goods sold using LIFO.
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
140
@
$6.00
=
$840.00
January 10
January 20
January 25
January 30
Totals
Date
Activities
Units Acquired at Cost
Units sold at Retail
Jan.
1
Beginning inventory
140
units
@
$
6.00
=
$
840
Jan.
10
Sales
100
units
@
$
15
Jan.
20
Purchase
60
units
@
$
5.00
=
300
Jan.
25
Sales
80
units
@
$
15
Jan.
30
Purchase
180
units
@
$
4.50
=
810
Totals
380
units
$
1,950
180
units
Explanation / Answer
Cost assigned to ending inventory and cost of goods sold using 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
140
$6.00
125
$6.00
$750.00
15
$6.00
$90.00
Jan. 20
Purchase
60
$5.00
55
$5.00
$275.00
5
$5.00
$25.00
Jan. 30
Purchase
180
$4.50
0
$4.50
$0.00
180
$4.50
$810.00
380
180
$1,025.00
200
$925.00
Cost assigned to ending inventory and to cost of goods sold using weighted average. (Round cost per unit to 2 decimal places.)
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
1-Jan
140
$6.00
140
@
$6.00
=
$840.00
10-Jan
100
$6.00
$600.00
40
$6.00
$240.00
20-Jan
60
$5.00
40
$6.00
$240.00
60
$ 5.00
$ 300.00
Average cost
100
$5.40
$540.00
25-Jan
80
$ 5.40
$ 432.00
20
$5.40
$108.00
30-Jan
180
4.50
20
$5.50
$110.00
180
$4.50
$810.00
Totals
380
180
$1,032.00
200
4.6
$920.00
Cost assigned to ending inventory and to cost of goods sold using FIFO.
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
1-Jan
140
$6.00
140
@
$6.00
=
$840.00
10-Jan
100
$6.00
$600.00
40
$6.00
$240.00
20-Jan
60
$5.00
40
$6.00
$240.00
60
$5.00
$300.00
100
$540.00
25-Jan
40
$6.00
$240.00
40
$5.00
$200.00
20
$5.00
$100.00
30-Jan
180
$4.50
20
$5.00
$100.00
180
$4.50
$810.00
Totals
380
180
$1,040.00
200
$910.00
Cost assigned to ending inventory and to cost of goods sold using LIFO.
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
1-Jan
140
$6.00
140
@
$6.00
=
$840.00
10-Jan
100
$6.00
$600.00
40
$6.00
$240.00
20-Jan
60
$5.00
40
$6.00
$240.00
60
$5.00
$300.00
100
$540.00
25-Jan
60
$5.00
$300.00
20
$6.00
$120.00
20
$6.00
$120.00
30-Jan
180
$4.50
20
$6.00
$120.00
180
$4.50
$810.00
Totals
380
180
$1,020.00
200
$930.00
Cost assigned to ending inventory and cost of goods sold using 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
140
$6.00
125
$6.00
$750.00
15
$6.00
$90.00
Jan. 20
Purchase
60
$5.00
55
$5.00
$275.00
5
$5.00
$25.00
Jan. 30
Purchase
180
$4.50
0
$4.50
$0.00
180
$4.50
$810.00
380
180
$1,025.00
200
$925.00
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