The following information applies to the questions displayed below.] Laker Compa

Question

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 180 units @ $ 7.60 = $ 1,368
Jan. 10   Sales 105 units @ $ 15.60
Jan. 20   Purchase 250 units @ $ 6.60 = 1,650
Jan. 25   Sales 175 units @ $ 15.60
Jan. 30   Purchase 120 units @ $ 5.60 = 672




  Totals 550 units $ 3,690 280 units

Required:

The company uses a perpetual inventory system. For specific identification, ending inventory consists of 270 units, where 120 are from the January 30 purchase, 80 are from the January 20 purchase, and 70 are from beginning inventory.

Explanation / Answer

Ending Inventory by specific identification is as prepared below:

Specific identification-Perpetual Date Goods Purchased Cost of goods sold Ending Inventory Units @ Cost per unit Cost of purchase Units sold @ Cost per unit Cost of goods sold Units @ Cost per unit Ending balance Jan-01 180 7.60 1,368 Jan-10 105 7.6 798 75 7.60 570 Jan-20 250 6.6 1650 75 7.60 570 250 6.60 1,650 Balance 325 2220 Jan-25 5 7.6 38 70 7.60 532 170 6.6 1122 80 6.60 528 Balance 150 1060 Jan-30 120 5.6 672 70 7.60 532 80 6.60 528 120 5.6 672 370 2322 280 1958 270 1732

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