Laker uses a periodic inventory system. For specific identification, ending inve
ID: 2483379 • Letter: L
Question
Laker uses a periodic inventory system. For specific identification, ending inventory consists of 525 units, where 290 are from the January 30 purchase, 80 are from the January 20 purchase, and 155 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 your cost per unit to 3 decimal places.)
Date Activities Units Acquired at Cost Units Sold at Retail
Jan. 1 Beginning inventory 350 units @ $11.00 =3,850
Jan. 10 Sales 190 units @$19.00
Jan. 20 Purchase 420 units @ $10.00= 4,200
Jan. 25 Sales 345 units @$19.00
Jan. 30 Purchase 290 units @ $9.00 = 2,610
Explanation / Answer
Date
Activities
Units Acquired
Price per unit
Cost
Jan.1
Beginning inventory
350
$11.00
$3,850.00
Jan.20
Purchase
420
$10.00
$4,200.00
Jan.30
Purchase
290
$9.00
$2,610.00
1060
$10,660.00
Ending Inventory
Cost of Goods Sold
a.
Specific Identification
(290 x $9.00) + (80 x $10.00) + (155 x $11)
$5,115.00
$10,660 - $5,115
$5,545.00
b.
Weighted Average
($10,660 / 1060 units = $10.057 average cost per unit)
525 * $10.057
$5,280.00
535 * $10.057
$5,380.00
c.
FIFO
(290 x $9.00) + (235 x $10.00)
$4,960.00
(350 x $11.00) + (185 x $10.00)
$5,700.00
d.
LIFO
(350 x $11.00) + (175 x $10.00)
$5,600.00
(290 x $9.00) + (245 x $10.00)
$5,060.00
Date
Activities
Units Acquired
Price per unit
Cost
Jan.1
Beginning inventory
350
$11.00
$3,850.00
Jan.20
Purchase
420
$10.00
$4,200.00
Jan.30
Purchase
290
$9.00
$2,610.00
1060
$10,660.00
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