laker company reported the folloing january purchases and sales data for its onl

Question

laker company reported the folloing january purchases and sales data for its only product

table has the figures below

jan 1 begining inventory units aquiered at cost 140 units@ $6.00=$840

jan 10 Sales.      units sold at retail 100 units@ $15

Jan 20 Purchase.    units aquired at cost.   60 units@$5.00=300

Jan25 sales.    units sold at retail 100 units@ $15

Jan 30 purchase units aquired a

t cost 180 units@ $4.50= 810

bad camera but on side dates activities middle units aquired at cost and right units sold at retail

the company uses perpetual inclventory system l.For specific idwntification ending invintory consist of 200 units where 180 are from january 30 purchase, 5 are from the january 20 purchase and 15 are from beginnng inventory.

1.complete the table to determin the cost assighned to ending invintory and cost of goods sold using specific identification.
2.determine cost assighned to ending inventory and to cost of goods sold useing wighted average.
3. determine cost assighned to ending inventory and to cost of goods sold useisng FIFO
4. determine cost assighned to ending inventory and to cost of goods sold useing LIFO

Explanation / Answer

Perpetual inventory system.

1. Specific identification:

Cost of goods sold:

180 units * $4.50 = $810

5 units * $5 = $25

15 units * $6 = $90

$925

Ending inventory:

125 units * $6 = $750

55 units * $5 = $275

$1025.

2. Weighted average method.

100 units * $5.40 = $540

3. FIFO

40 units * $6 = $240

60 units * $5 = $300

40 units * $6 = $240

60 units * $5 = $300

4. LIFO

40 units * $6 = $240

60 units * $5 = $300

60 units * $5 = $300

40 units * $6 = $240

Date Cost of goods available for sale Cost of goods sold Ending inventory Jan 1 140 units * $6 = $840 140 units * $6 = $840 10 100 units * $6 = $600 40 units * $6 = $240 20 60 units * $5 = $300

100 units * $5.40 = $540

25 100 units * $5.40 = $540 30 180 units * $4.50 = $810 180 units * $4.50 = $810 Cost of goods sold = $1140 Ending inventory = $810

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