er Company reported the following January purchases and sales data for its only

Question

er Company reported the following January purchases and sales data for its only product. Lak Date Activities Units Acquired at Cost 14@units @ $6.00 = $840 60 units@$5.00 300 Units Sold at Retail Jan. I Beginning i Jan. 10 Sales Jan. 20 Purchase. Jan. 25 Sales 100 units @$15 80 units@$15 18° units @ $4.50· 810 1.950 8Q 180 units Required ny uses a perpetual inventory system. Determine the cost assigned to ending inventory and to ts and inventory amounts to cents.) For specific identification, ending inventory consists of se, 5 are from the Janúary 20 purchase, and 15 are cost of goods sold using (a) specific identification, (b) weighted average, (c) FIFO, and (d) LIFO. (Round uni per 200 units, where 180 are from the January 30 purcha from beginning inventory

Explanation / Answer

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 Jan. 1 Beginning inventory 140 $6.00 125 $6.00 $750 15 6 90 Jan. 20 Purchase 60 $5.00 55 $5.00 $275 5 5 25 Jan. 30 Purchase 180 $4.50 180 4.5 810 380 180 1025 200 925 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 January 1 140 @ $6.00 = $840.00 January 10 100 @ $6.00 = $600.00 40 @ $6.00 = $240.00 January 20 60 @ $5.00 40 @ $6.00 = $240.00 60 @ $5.00 = $300.00 Average cost 100 @ $5.40 $540.00 january 25 80 @ $5.40 = $432.00 20 @ $5.40 = $108.00 January 30 180 @ $4.50 20 @ $5.40 = $108.00 180 @ $4.50 = $810.00 Totals $1,032.00 200 @ $4.59 $918.00 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 January 1 140 @ $6.00 = $840.00 January 10 100 @ $6.00 = $600.00 40 @ $6.00 = $240.00 January 20 60 @ $5.00 40 @ $6.00 = $240.00 60 @ $5.00 = $300.00 $540.00 January 25 40 @ 6 = 240 @ $6.00 = 40 @ 5 = 200 20 @ $5.00 = $100.00 $440.00 100 January 30 180 @ $4.50 @ $6.00 20 @ $5.00 = $100.00 180 @ $4.50 = $810.00 Totals $1,040.00 910 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 January 1 140 @ $6.00 = $840.00 January 10 100 @ $6.00 = $600.00 40 @ 6 = 240 January 20 60 @ $5.00 40 @ $6.00 = 240 60 @ 5 = 300 540 January 25 20 @ 6 = 120 20 @ 6 = 120 60 @ 5 = 300 0 @ 5 = $420.00 120 January 30 180 @ $4.50 20 @ $6.00 = $120.00 180 @ $4.50 = $810.00 Totals 1020 930

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