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, and 15 units from beginning inventory. Activities Units Acquired at Cost $ 6.00 = Date Units sold at Retail $ 840 January 1 January 10 January 20 Beginning inventory Sales Purchase 140 units 100 units e $ 15 60 units $ 5.00 = 300
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, and 15 units from beginning inventory. Activities Units Acquired at Cost $ 6.00 = Date Units sold at Retail $ 840 January 1 January 10 January 20 Beginning inventory Sales Purchase 140 units 100 units e $ 15 60 units $ 5.00 = 300
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Can you please explain how to get the Cost of Goods Solds category 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. 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, and 15 units from beginning inventory.
Activities
Units Acquired at Cost
@
Date
Units sold at Retail
140 units
$ 6.00 =
$ 840
January 1
January 10
January 20
January 25
January 30
Beginning inventory
Sales
Purchase
100 units
@ $ 15
60 units
$ 5.00 =
300
@ $ 15
Sales
Purchase
80 units
180 units
$ 4.50 =
810
Totals
380 units
$ 1,950
180 units
The Company uses a periodic inventory system. For specific identification, ending inventory consists of 180 units from the January
30 purchase, 5 units from the January 20 purchase, and 15 units from beginning inventory. Determine the cost assigned to ending
inventory and to cost of goods sold using (a) specific identification, (b) weighted average, (c) FIFO, and (d) LIFO.
Complete this question by entering your answers in the tabs below.
Weighted
Average
Specific Id
FIFO
LIFO
Determine the cost assigned to ending inventory and to cost of goods sold using LIFO.
d) Periodic LIFO
Cost of Goods Available for Sale
Cost of Goods Sold
Ending Inventory
# of units
in ending
inventory
Cost of Goods
# of units
sold
Cost per
unit
Cost of
Ending
per unit Inventory
Cost
Cost
# of units
Available for
per unit
Goods Sold
Sale
Beginning inventory
140
6.00
$
840
20
$
6.00
$
120
140
$ 6.00
$
840
Purchases:
January 20
60
5.00
300
60
$
5.00
300
60
$ 5.00
300
January 30
180
4.50
810
Total
380
$
1,950
80
$
420
200
1,140
< FIFO
LIFO
>
24](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdaff1811-7080-4257-99e1-4551c4de7ff7%2F9480ee61-c302-4c68-afcc-ec7a1bface27%2F67t5zgu_processed.png&w=3840&q=75)
Transcribed Image Text: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 180 units from the January
30 purchase, 5 units from the January 20 purchase, and 15 units from beginning inventory.
Activities
Units Acquired at Cost
@
Date
Units sold at Retail
140 units
$ 6.00 =
$ 840
January 1
January 10
January 20
January 25
January 30
Beginning inventory
Sales
Purchase
100 units
@ $ 15
60 units
$ 5.00 =
300
@ $ 15
Sales
Purchase
80 units
180 units
$ 4.50 =
810
Totals
380 units
$ 1,950
180 units
The Company uses a periodic inventory system. For specific identification, ending inventory consists of 180 units from the January
30 purchase, 5 units from the January 20 purchase, and 15 units from beginning inventory. Determine the cost assigned to ending
inventory and to cost of goods sold using (a) specific identification, (b) weighted average, (c) FIFO, and (d) LIFO.
Complete this question by entering your answers in the tabs below.
Weighted
Average
Specific Id
FIFO
LIFO
Determine the cost assigned to ending inventory and to cost of goods sold using LIFO.
d) Periodic LIFO
Cost of Goods Available for Sale
Cost of Goods Sold
Ending Inventory
# of units
in ending
inventory
Cost of Goods
# of units
sold
Cost per
unit
Cost of
Ending
per unit Inventory
Cost
Cost
# of units
Available for
per unit
Goods Sold
Sale
Beginning inventory
140
6.00
$
840
20
$
6.00
$
120
140
$ 6.00
$
840
Purchases:
January 20
60
5.00
300
60
$
5.00
300
60
$ 5.00
300
January 30
180
4.50
810
Total
380
$
1,950
80
$
420
200
1,140
< FIFO
LIFO
>
24
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