Assume the perpetual inventory system is used. 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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Topic Video
Question
Laker Company reported the following January purchases and sales data for its only product. For specific identification,
ending inventory consists of 385 units from the January 30 purchase, 5 units from the January 20 purchase, and 25 units
from beginning inventory.
Date
January 1
Activities
Beginning inventory
January 10
January 20
January 25
Sales
Purchase
Sales
January 30
Purchase
Totals
385 units @
800 units
Units Acquired at Cost
235 units @ $ 16.00 =
180 units @ $ 15.00 =
$ 13.00 =
Units sold at Retail
$ 3,760
185 units
@
$ 25.00
2,700
200 units.
@
$ 25.00
5,005
$ 11,465
385 units
Assume the perpetual inventory system is used.
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 this question by entering your answers in the tabs below.
Specific
Identification
Weighted
Average
FIFO
LIFO
Determine the cost assigned to ending inventory and to cost of goods sold using LIFO.
Perpetual LIFO:
Goods Purchased
Cost of Goods Sold
Inventory Balance
Date
# of units
Cost per
unit
# of units
sold
Cost per Cost of Goods
unit
Sold
Cost per
# of units
unit
Inventory Balance
January 1
235 at
$ 16.00 = $
3,760.00
January 10
Transcribed Image Text:Laker Company reported the following January purchases and sales data for its only product. For specific identification, ending inventory consists of 385 units from the January 30 purchase, 5 units from the January 20 purchase, and 25 units from beginning inventory. Date January 1 Activities Beginning inventory January 10 January 20 January 25 Sales Purchase Sales January 30 Purchase Totals 385 units @ 800 units Units Acquired at Cost 235 units @ $ 16.00 = 180 units @ $ 15.00 = $ 13.00 = Units sold at Retail $ 3,760 185 units @ $ 25.00 2,700 200 units. @ $ 25.00 5,005 $ 11,465 385 units Assume the perpetual inventory system is used. 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 this question by entering your answers in the tabs below. Specific Identification Weighted Average FIFO LIFO Determine the cost assigned to ending inventory and to cost of goods sold using LIFO. Perpetual LIFO: Goods Purchased Cost of Goods Sold Inventory Balance Date # of units Cost per unit # of units sold Cost per Cost of Goods unit Sold Cost per # of units unit Inventory Balance January 1 235 at $ 16.00 = $ 3,760.00 January 10
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 6 steps with 8 images

Blurred answer
Knowledge Booster
Accounting for Merchandise Inventory
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education