Laker Company reported the following January purchases and sales data for its only product. Date Activities Units Acquired at Cost Units sold at Retail Jan. 1 Beginning inventory 145 units @ $ 7.00 = $ 1,015 Jan. 10 Sales 105 units @ $ 16.00 Jan. 20 Purchase 70 units @ $ 6.00 = 420 Jan. 25 Sales 85 units @ $ 16.00 Jan. 30 Purchase 190 units @ $ 5.50 = 1,045 Totals 405 units $ 2,480 190 units The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 215 units, where 190 are from the January 30 purchase, 5 are from the January 20 purchase, and 20 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.

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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[The following information applies to the questions displayed below.]

Laker Company reported the following January purchases and sales data for its only product.

Date		Activities	Units Acquired at Cost	Units sold at Retail
Jan.	1		Beginning inventory	145	units	@	$	7.00	=	$	1,015
Jan.	10		Sales									105	units	@	$	16.00
Jan.	20		Purchase	70	units	@	$	6.00	=		420
Jan.	25		Sales									85	units	@	$	16.00
Jan.	30		Purchase	190	units	@	$	5.50	=		1,045
			Totals	405	units					$	2,480	190	units

The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 215 units, where 190 are from the January 30 purchase, 5 are from the January 20 purchase, and 20 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.

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.
Date
Activities
Jan. 1 Beginning inventory
Jan. 10 Sales
Jan. 20 Purchase
Jan. 25 Sales
Jan. 30 Purchase
Totals
Units Acquired at Cost
145 units@ $7.00 = $1,015
70 units @ $6.00 =
190 units@ $5.50 =
405 units
Purchase Date
Jan. 1
Jan, 20
Jan. 30
Complete this question by entering your answers in the tabs below.
The Company uses a perpetual Inventory system. For specific Identification, ending Inventory consists of 215 units, where
190 are from the January 30 purchase, 5 are from the January 20 purchase, and 20 are from beginning Inventory.
Available for Sale
Activity
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.
Beginning inventory
Purchase
Purchase
Required 1 Required 2 Required 3 Required 4
Complete the table to determine the cost assigned to ending inventory and cost of goods sold using specific identification. (Round cost per unit to 2 decimal
places.)
Specific Identification
Units
420
1,045
$2,480
Unit
Cost
145 $ 7.00
70 $ 6.00
190 $ 5.50
405
Units
Sold
Units sold at Retail
0
185 units@ $16.00
85 units@ $16.00
Unit Cost
190 units
Cost of Goods Sold
< Required 1
COGS
$
0
Ending Inventory
Cost Per
Unit
Ending
Inventory-
Units
Required 2 >
0
Ending
Inventory-
Cost
$
0

Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Determine the cost assigned to ending inventory and to cost of goods sold using weighted average. (Round cost per unit to 2 decimal places.)
Weighted Average - Perpetual:
Date
January 1
January 10
January 20
Average cost
January 25
January 30
Totals
Required 3
Goods Purchased
# of
units
Cost per
unit
Required 4
# of
units
sold
Cost of Goods Sold
Cost per Cost of Goods
unit
Sold
# of units
Inventory Balance
Cost per
unit
145 @
$ 7.00 =
Inventory
Balance
$ 1.015.00

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