Required information [The following information applies to the questions display
ID: 2562750 • Letter: R
Question
Required information
[The following information applies to the questions displayed below.]
Laker Company reported the following January purchases and sales data for its only product.
The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 200 units, where 180 are from the January 30 purchase, 5 are from the January 20 purchase, and 15 are from beginning inventory.
Required:
1. Complete the table to determine the cost assigned to ending inventory and cost of goods sold using specific identification.
2. Determine the cost assigned to ending inventory and to cost of goods sold using weighted average.
3. Determine the cost assigned to ending inventory and to cost of goods sold using FIFO.
4. Determine the cost assigned to ending inventory and to cost of goods sold using LIFO.
Complete the table to determine the cost assigned to ending inventory and cost of goods sold using specific identification.
Determine the cost assigned to ending inventory and to cost of goods sold using weighted average. (Round cost per unit to 2 decimal places.)
Determine the cost assigned to ending inventory and to cost of goods sold using FIFO.
Determine the cost assigned to ending inventory and to cost of goods sold using LIFO.
Date Activities Units Acquired at Cost Units sold at Retail Jan. 1 Beginning inventory 140 units @ $ 6.00 = $ 840 Jan. 10 Sales 100 units @ $ 15 Jan. 20 Purchase 60 units @ $ 5.00 = 300 Jan. 25 Sales 80 units @ $ 15 Jan. 30 Purchase 180 units @ $ 4.50 = 810 Totals 380 units $ 1,950 180 unitsExplanation / Answer
Q1.
Specific Identification
Receipts
Cost of Goods Sold
Balance
Date
Description
Qty
Rate
Amount
Qty
Rate
Amount
Qty
Rate
Amount
1-Jan
Beginning Inventory
140
$ 6.00
$ 840.00
15
$ 6.00
$ 90.00
10-Jan
Sales
125
$ 6.00
$ 750.00
20-Jan
Purchase
60
$ 5.00
$ 300.00
5
$ 5.00
$ 25.00
25-Jan
Sales
55
$ 5.00
$ 275.00
30-Jan
Purchase
180
$ 4.50
$ 810.00
180
$ 4.50
$ 810.00
Total
380
$ 1,950.00
180
$ 1,025.00
200
$ 925.00
Q2.
Weighted Average
Receipts
Cost of Goods Sold
Balance
Date
Description
Qty
Rate
Amount
Qty
Rate
Amount
Qty
Rate
Amount
1-Jan
Beginning Inventory
140
$ 6.00
$ 840.00
140
$ 6.00
$ 840.00
10-Jan
Sales
100
$ 6.00
$ 600.00
40
$ 6.00
$ 240.00
20-Jan
Purchase
60
$ 5.00
$ 300.00
100
$ 5.40
$ 540.00
25-Jan
Sales
80
$ 5.40
$ 432.00
20
$ 5.40
$ 108.00
30-Jan
Purchase
180
$ 4.50
$ 810.00
200
$ 4.59
$ 918.00
Total
380
$ 1,950.00
180
$ 1,032.00
200
$ 918.00
Q3.
FIFO
Receipts
Cost of Goods Sold
Balance
Date
Description
Qty
Rate
Amount
Qty
Rate
Amount
Qty
Rate
Amount
1-Jan
Beginning Inventory
140
$ 6.00
$ 840.00
140
$ 6.00
$ 840.00
10-Jan
Sales
100
$ 6.00
$ 600.00
40
$ 6.00
$ 240.00
20-Jan
Purchase
60
$ 5.00
$ 300.00
60
$ 5.00
$ 300.00
25-Jan
Sales
40
$ 6.00
$ 240.00
40
$ 5.00
$ 200.00
20
$ 5.00
$ 100.00
30-Jan
Purchase
180
$ 4.50
$ 810.00
180
$ 4.50
$ 810.00
Total
380
$ 1,950.00
180
$ 1,040.00
200
$ 910.00
Q4.
LIFO
Receipts
Cost of Goods Sold
Balance
Date
Description
Qty
Rate
Amount
Qty
Rate
Amount
Qty
Rate
Amount
1-Jan
Beginning Inventory
140
$ 6.00
$ 840.00
140
$ 6.00
$ 840.00
10-Jan
Sales
100
$ 6.00
$ 600.00
40
$ 6.00
$ 240.00
20-Jan
Purchase
60
$ 5.00
$ 300.00
60
$ 5.00
$ 300.00
25-Jan
Sales
60
$ 5.00
$ 300.00
20
$ 6.00
$ 120.00
20
$ 6.00
$ 120.00
30-Jan
Purchase
180
$ 4.50
$ 810.00
180
$ 4.50
$ 810.00
Total
380
$ 1,950.00
180
$ 1,020.00
200
$ 930.00
Methods
Ending Inventory
Cost of Goods Sold
Specific Identification
$ 925.00
$ 1,025.00
Weighted Average
$ 918.00
$ 1,032.00
FIFO
$ 910.00
$ 1,040.00
LIFO
$ 930.00
$ 1,020.00
Specific Identification
Receipts
Cost of Goods Sold
Balance
Date
Description
Qty
Rate
Amount
Qty
Rate
Amount
Qty
Rate
Amount
1-Jan
Beginning Inventory
140
$ 6.00
$ 840.00
15
$ 6.00
$ 90.00
10-Jan
Sales
125
$ 6.00
$ 750.00
20-Jan
Purchase
60
$ 5.00
$ 300.00
5
$ 5.00
$ 25.00
25-Jan
Sales
55
$ 5.00
$ 275.00
30-Jan
Purchase
180
$ 4.50
$ 810.00
180
$ 4.50
$ 810.00
Total
380
$ 1,950.00
180
$ 1,025.00
200
$ 925.00
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