Laker Company reponed the follawing January purchases and saes data for its only
ID: 2412324 • Letter: L
Question
Laker Company reponed the follawing January purchases and saes data for its only product Units sold at Retal 11D unit $1850 90 unis $16.50 Units Acqred at Cost 150 units a 1 Baginning nventory Jan 20 Puchose Jan 30 Puchasc 57.50 = ? 1125 BO units $650-520 2.845 200 units The company uscsaperiodic inwentory syatem. For soocific identufication,nding inventory consits of 230 units, where 200arfrom the January 30 purchase,5 ane from the Jaruary 20 purchase, and 25 anc ram beginning iventory. 2.00 points Required 1. Complete the table to determine the coet assigned to endirg inventory and to cost af goods sold using specifc identncation. Round cost per unit to 2 decimal places.) Cost of Goodsof units Cost Available fr Cost per per Cost of unit Gaods Sald Cost per Ending in ending unitInventory Boginring ivenbory Purchases an. 30Explanation / Answer
(1) Specific Identification:-
Cost of goods available for sale
Cost of Goods sold
Ending Inventory
No of Units
Cost per unit
Cost of goods available for sale
No of Units sold
Cost per unit
Cost of goods sold
No of units in ending inventory
Cost per unit
Ending Inventory
Beginning Inventory
150
7.50
1125
125
7.5
937.5
25
7.5
187.5
Purchases:-
Jan 20
80
6.5
520
75
6.5
487.5
5
6.5
32.5
Jan 30
200
6
1200
----
----
200
6
1200
Total
430
2845
200
1425
230
1420
(2) Weighted Average:-
Cost of goods available for sale
Cost of Goods sold
Ending Inventory
No of Units
Average Cost per unit
Cost of goods available for sale
No of Units sold
Average Cost per unit
Cost of goods sold
No of units in ending inventory
Average Cost per unit
Ending Inventory
Beginning Inventory
150
6.616279
992.44
125
6.616279
827
25
6.616279
165.41
Purchases:-
Jan 20
80
6.616279
529.30
75
6.616279
496
5
6.616279
33.08
Jan 30
200
6.616279
1323.26
----
----
200
6.616279
1323.26
Total
430
2845
200
1323
230
1522
Average cost per unit = (Total of units * cost)/Total no of units
= [(150 * 7.5) + (80 * 6.5) + (200 * 6)] / 430 = 6.616279
(3) FIFO:-
Cost of goods available for sale
Cost of Goods sold
Ending Inventory
No of Units
Cost per unit
Cost of goods available for sale
No of Units sold
Cost per unit
Cost of goods sold
No of units in ending inventory
Cost per unit
Ending Inventory
Beginning Inventory
150
7.50
1125
150
7.5
1125
Purchases:-
Jan 20
80
6.5
520
50
6.5
325
30
6.5
195
Jan 30
200
6
1200
----
----
200
6
1200
Total
430
2845
200
1450
230
1395
(4) LIFO:-
Cost of goods available for sale
Cost of Goods sold
Ending Inventory
No of Units
Cost per unit
Cost of goods available for sale
No of Units sold
Cost per unit
Cost of goods sold
No of units in ending inventory
Cost per unit
Ending Inventory
Beginning Inventory
150
7.50
1125
120
7.5
900
30
7.5
225
Purchases:-
Jan 20
80
6.5
520
80
6.5
520
Jan 30
200
6
1200
----
----
200
6
1200
Total
430
2845
200
1420
230
1425
Cost of goods available for sale
Cost of Goods sold
Ending Inventory
No of Units
Cost per unit
Cost of goods available for sale
No of Units sold
Cost per unit
Cost of goods sold
No of units in ending inventory
Cost per unit
Ending Inventory
Beginning Inventory
150
7.50
1125
125
7.5
937.5
25
7.5
187.5
Purchases:-
Jan 20
80
6.5
520
75
6.5
487.5
5
6.5
32.5
Jan 30
200
6
1200
----
----
200
6
1200
Total
430
2845
200
1425
230
1420
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