[The following Information applies to the questions displayed below.] A company reports the following beginning Inventory and two purchases for the month of January. On January 26, the company sells 370 units. Ending Inventory at January 31 totals 150 units. Beginning inventory on January 1 Purchase on January 9 Units 330 Unit Cost $ 3.20 80 Purchase on January 25 110 3.40 3.50 Assume the perpetual Inventory system is used. Determine the costs assigned to ending Inventory when costs are assigned based on the LIFO method. Perpetual LIFO: Goods purchased Cost of Goods Sold Inventory Balance Date # of units Cost per # of units Cost per Cost of Goods # of units unit sold unit Sold Cost per unit Inventory Balance January 1 80 at $ 3.40 January 9 Total January 9 110 at $3.50 330 at $ 3.20= $ 1,056 330 at $3.20 = $1,056 80 at $ 3.40 = 272 $ 1,328 330 at $ 69 3.20 $1,056 January 25 Total January 25 80 at $ 110 at $ 3.40= 3.50= 272 385 $ 1,713 January 26 Total January 26 at $ at $ 3.50= $ 3.40= HE at $ 3.20= 00 0 II II

[The following Information applies to the questions displayed below.] A company reports the following beginning Inventory and two purchases for the month of January. On January 26, the company sells 370 units. Ending Inventory at January 31 totals 150 units. Beginning inventory on January 1 Purchase on January 9 Units 330 Unit Cost $ 3.20 80 Purchase on January 25 110 3.40 3.50 Assume the perpetual Inventory system is used. Determine the costs assigned to ending Inventory when costs are assigned based on the LIFO method. Perpetual LIFO: Goods purchased Cost of Goods Sold Inventory Balance Date # of units Cost per # of units Cost per Cost of Goods # of units unit sold unit Sold Cost per unit Inventory Balance January 1 80 at $ 3.40 January 9 Total January 9 110 at $3.50 330 at $ 3.20= $ 1,056 330 at $3.20 = $1,056 80 at $ 3.40 = 272 $ 1,328 330 at $ 69 3.20 $1,056 January 25 Total January 25 80 at $ 110 at $ 3.40= 3.50= 272 385 $ 1,713 January 26 Total January 26 at $ at $ 3.50= $ 3.40= HE at $ 3.20= 00 0 II II

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. For specific identification, ending inventory consists of 270 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 Assume the perpetual inventory system is used. Required: Activities Beginning inventory Sales Purchase Sales Purchase Totals Specific Identification Purchase Date January 1 January 20 January 30 Complete this question by entering your answers in the tabs below. FIFO Activity Units Acquired at Cost 180 units @ $10.50 = LIFO Available for Sale Beginning inventory Purchase Purchase 110 units 270 units @ 560 units # of units 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…
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Kirtland Corporation uses a periodic inventory system. At the end of the annual accounting period, December 31, the accounting records for the most popular item in inventory showed the following: Assessment Tool iFrame Transactions Beginning inventory, January 1 Transactions during the year: a. Purchase, January 30 b. Purchase, May 1 c. Sale ($5 each) d. Sale ($5 each) Units 400 Unit Cost $ 3.00 300 460 3.40 4.00 (160) (700) Required: a. Compute the amount of goods available for sale. b. & c. Compute the amount of ending inventory and cost of goods sold at December 31, under Average cost, First-in, first-out, Last-in, first-out and Specific identification inventory costing methods. For Specific identification, assume that the first sale was selected two- fifths from the beginning inventory and three-fifths from the purchase of January 30. Assume that the second sale was selected from the remainder of the beginning inventory, with the balance from the purchase of May 1. Complete this…
[The following information applies to the questions displayed below.] Laker Company reported the following January purchases and sales data for its only product. For specific identification, ending inventory consists of 270 units from the January 30 purchase, 5 units from the January 20 purchase, and 10 units from beginning inventory. Date January 1 January 10 January 20 January 25 January 30 Assume the perpetual inventory system is used. Required: Activities Beginning inventory Sales Purchase Sales Purchase Totals Req 1 Req 2 to 4 Sales Cost of goods sold Gross profit Complete this question by entering your answers in the tabs below. Specific Identification $ LAKER COMPANY For Month Ended January 31 Weighted Average $ Units Acquired at Cost 185 units @ $11.00 = 5,600 100 units @ 1. Compute gross profit for the month of January for Laker Company for the four inventory methods. 2. Which method yields the highest gross profit? 3. Does gross profit using weighted average fall between that…