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 280 units from the January 30 purchase, 5 units from the January 20 purchase, and 15 units from beginning inventory. Date January 1 January 10 January 20 January 25 January 30 Activities Units Acquired at Cost 190 units @ Units sold at Retail Beginning inventory Sales Purchase $ 7.00 = $ 1,330 150 units $ 16.00 110 units @ $ 6.00 = 660 Saleş Purchase 130 units $ 16.00 280 units e $ 5.50 = 1,540 Totals 580 units $ 3,530 280 units

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 280 units from the January 30 purchase, 5 units from the January 20 purchase, and 15 units from beginning inventory. Date January 1 January 10 January 20 January 25 January 30 Activities Units Acquired at Cost 190 units @ Units sold at Retail Beginning inventory Sales Purchase $ 7.00 = $ 1,330 150 units $ 16.00 110 units @ $ 6.00 = 660 Saleş Purchase 130 units $ 16.00 280 units e $ 5.50 = 1,540 Totals 580 units $ 3,530 280 units

Name: Fill in the chart. Determine the cost assigned to ending inventory and
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Description: Fill in the chart. Determine the cost assigned to ending inventory and to cost of goods sold using LIFO. Required informationWeightedAverageSpecific IdFIFOLIFODetermine the cost assigned to ending inventory and to cost of goods sold using LIFO.Perpet

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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A: Solution :

Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

Topic Video

Question

Fill in the chart. Determine the cost assigned to ending inventory and to cost of goods sold using LIFO.

Required information
Weighted
Average
Specific Id
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
Cost per
# of units
sold
Cost per Cost of Goods
unit
Cost per
unit
# of units
# of units
Inventory Balance
unit
Sold
January 1
190 at
$ 7.00 =
$
1,330.00
January 10
January 20
Total January 20
January 25
Total January 25
January 30
Totals
FIFO
LIFO
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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 280 units from the January 30
purchase, 5 units from the January 20 purchase, and 15 units from beginning inventory.
Date
January 1
January 10
January 20
January 25
January 30
Activities
Units Acquired at Cost
190 units @
Units sold at Retail
Beginning inventory
Sales
Purchase
Saleş
Purchase
$ 7.00 =
$ 1,330
150 units
$ 16.00
110 units @
$ 6.00 =
660
130 units
$ 16.00
280 units @
$ 5.50 =
1,540
$ 3,530
Totals
580 units
280 units
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.
Weighted
Average
Specific Id
FIFO
LIFO
Determine the cost assigned to ending inventory and to cost of goods sold using LIFO.
Perpetual LIFO:
Cost of Goods Sold
Goods Purchased
Inventory Balance
Date
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Expert Solution

Step 1 Introduction

Using LIFO method, the new units are sold first and old units are sold later.

LIFO stands for Last in First Out.

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