17 (The following information applies to the questions displayed below] Lakeland
ID: 2540811 • Letter: 1
Question
17 (The following information applies to the questions displayed below] Lakeland Company uses a perpetual inventory system, It entered into the following purchases and sales transactions for October t 3 of 4 250 unitss54.00/unit 300 units$59.00/unit Oct. 1 inventory Oct. 5 Purchase Oct. 9 Sales Oct. 18 Purchase Oct.25 Purchase Oct.29 Sales 160 units $64.00/unit 300 unit5s66.00/unit soount 28o unts $99.0unit 1,010 units 690 u 3. Compute the cost assigned to ending average, and (d) specific identification. For specific identification, the October 9 sale consisted of 140 units from beginning inventory and 270 units from the October 5 purchase; the October 29 sale consisted of 120 units from the October 18 purchase and 160 units from the October 25 purchase. (Round your average cost per unit to 2Explanation / Answer
1 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 Oct 1 Beginning inventory 250 $54.00 140 $54.00 $7,560.00 110 54 $5,940.00 Oct 5 Purchase 300 $59.00 270 $59.00 $15,930.00 30 59 $1,770.00 Oct 18 Purchase 160 $64.00 120 $64.00 $7,680.00 40 64 $2,560.00 Oct 25 Purchase 300 $66.00 160 $66.00 $10,560.00 140 66 $9,240.00 1010 690 $41,730.00 320 $19,510.00 2 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 Oct 1 250 @ $54.00 = $13,500.00 Oct 5 300 @ $59.00 250 @ $54.00 = $13,500.00 300 @ $59.00 = $17,700.00 550 @ $56.73 = $31,200.00 Oct 9 410 @ $56.73 = $23,258.18 140 @ $56.73 = $7,941.82 $23,258.18 $ 7,941.82 Oct 18 160 @ $64.00 140 @ $56.73 = $7,941.82 160 @ $64.00 = $10,240.00 300 @ 60.61 = $18,181.82 Oct 25 300 @ $66.00 300 @ 60.61 = $18,181.82 300 @ $66.00 = $19,800.00 600 @ $63.30 = $37,981.82 Oct 29 280 @ $63.30 = $17,724.85 320 @ $63.30 = $20,256.97 $17,724.85 $20,256.97 Totals $40,983.03 $20,256.97 3 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 Oct 1 250 @ $54.00 = $13,500.00 Oct 5 300 @ $59.00 250 @ $54.00 = $13,500.00 300 @ $59.00 = $17,700.00 $31,200.00 Oct 9 250 @ $54.00 = $13,500.00 140 @ $59.00 = $8,260.00 160 @ $59.00 = $9,440.00 $22,940.00 $ 8,260 Oct 18 160 @ $64.00 140 @ $59.00 = $8,260.00 160 @ $64.00 = $10,240.00 $ 18,500 Oct 25 300 @ $66.00 140 @ $59.00 = $8,260.00 160 @ $64.00 = $10,240.00 300 @ $66.00 = $19,800.00 $ 30,040 Oct 29 140 @ $59.00 = $8,260.00 20 @ $64.00 = $1,280.00 140 @ $64.00 = $8,960.00 300 @ $66.00 = $19,800.00 $17,220.00 $ 21,080 Totals $40,160.00 $ 21,080 4 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 Oct 1 250 @ $54.00 = $13,500.00 Oct 5 300 @ $59.00 250 @ $54.00 = $13,500.00 300 @ $59.00 = $17,700.00 $31,200.00 Oct 9 300 @ $59.00 = $17,700.00 140 @ $54.00 = $7,560.00 110 @ $54.00 = $5,940.00 $23,640.00 $ 7,560 Oct 18 160 @ $64.00 140 @ $54.00 = $7,560.00 160 @ $64.00 = $10,240.00 $ 17,800 Oct 25 300 @ $66.00 140 @ $54.00 = $7,560.00 160 @ $64.00 = $10,240.00 300 @ $66.00 = $19,800.00 $ 37,600 Oct 29 280 @ $66.00 = $18,480.00 140 @ $54.00 = $7,560.00 160 @ $64.00 = $10,240.00 $18,480.00 20 @ $66.00 $1,320.00 Totals $42,120.00 $19,120.00
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