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Activities Units Acquired at Cost e $ 6.00 = Date Units sold at Retail $ 840 January 1 January 10 January 20 January 25 January 30 Beginning inventory 140 units Sales 100 units e $ 15 Purchase 60 units e $ 5.00 = 300 Sales 80 units @ $ 15 Purchase 180 units e $ 4.50 = 810 Totals 380 units $ 1,950 180 units ompany uses a periodic inventory system. For specific identification, ending inventory consists of 180 units from the Janua se, 5 units from the January 20 purchase, and 15 units from beginning inventory. Determine the cost assigned to ending ory and to cost of goods sold using (a) specific identification, (b) weighted average, (c) FIFO, and (d) LIFO.

Activities Units Acquired at Cost e $ 6.00 = Date Units sold at Retail $ 840 January 1 January 10 January 20 January 25 January 30 Beginning inventory 140 units Sales 100 units e $ 15 Purchase 60 units e $ 5.00 = 300 Sales 80 units @ $ 15 Purchase 180 units e $ 4.50 = 810 Totals 380 units $ 1,950 180 units ompany uses a periodic inventory system. For specific identification, ending inventory consists of 180 units from the Janua se, 5 units from the January 20 purchase, and 15 units from beginning inventory. Determine the cost assigned to ending ory and to cost of goods sold using (a) specific identification, (b) weighted average, (c) FIFO, and (d) LIFO.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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### Required Information **Laker Company Inventory and Sales Data:** 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: - 180 units from the January 30 purchase - 5 units from the January 20 purchase - 15 units from the beginning inventory Your task is to determine the cost assigned to ending inventory and the cost of goods sold using: - **Specific Identification** - **Weighted Average** - **FIFO (First-In, First-Out)** - **LIFO (Last-In, First-Out)** ### Inventory and Sales Table | Date | Activities | Units Acquired at Cost | Units Sold at Retail | |--------------|-------------------------|------------------------|----------------------| | January 1 | Beginning inventory | 140 units @ $6.00 | $840 | | January 10 | Sales | | 100 units @ $15 | | January 20 | Purchase | 60 units @ $5.00 | $300 | | January 25 | Sales | | 80 units @ $15 | | January 30 | Purchase | 180 units @ $4.50 | $810 | | **Totals** | | **380 units** | **$1,950** | - **Units sold:** 180 units ### Inventory Calculation The company uses a periodic inventory system. In determining the cost of ending inventory and cost of goods sold with LIFO, consider the following detailed breakdown: #### Periodic LIFO Table **Cost of Goods Available for Sale** - **Beginning Inventory:** - 140 units @ $6.00 each = $840 - **Purchases:** - January 20: 60 units @ $5.00 each = $300 - January 30: 180 units @ $4.50 each = $810 - **Total:** - 380 units available for sale at a total cost of $1,950 **Cost of Goods Sold** - **Beginning Inventory:** - 100 units sold @ $6.00 each = $600 - **Purchases:** - January 20: 60 units sold @ $5.00 each = $300 - January
Transcribed Image Text:### Required Information **Laker Company Inventory and Sales Data:** 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: - 180 units from the January 30 purchase - 5 units from the January 20 purchase - 15 units from the beginning inventory Your task is to determine the cost assigned to ending inventory and the cost of goods sold using: - **Specific Identification** - **Weighted Average** - **FIFO (First-In, First-Out)** - **LIFO (Last-In, First-Out)** ### Inventory and Sales Table | Date | Activities | Units Acquired at Cost | Units Sold at Retail | |--------------|-------------------------|------------------------|----------------------| | January 1 | Beginning inventory | 140 units @ $6.00 | $840 | | January 10 | Sales | | 100 units @ $15 | | January 20 | Purchase | 60 units @ $5.00 | $300 | | January 25 | Sales | | 80 units @ $15 | | January 30 | Purchase | 180 units @ $4.50 | $810 | | **Totals** | | **380 units** | **$1,950** | - **Units sold:** 180 units ### Inventory Calculation The company uses a periodic inventory system. In determining the cost of ending inventory and cost of goods sold with LIFO, consider the following detailed breakdown: #### Periodic LIFO Table **Cost of Goods Available for Sale** - **Beginning Inventory:** - 140 units @ $6.00 each = $840 - **Purchases:** - January 20: 60 units @ $5.00 each = $300 - January 30: 180 units @ $4.50 each = $810 - **Total:** - 380 units available for sale at a total cost of $1,950 **Cost of Goods Sold** - **Beginning Inventory:** - 100 units sold @ $6.00 each = $600 - **Purchases:** - January 20: 60 units sold @ $5.00 each = $300 - January
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