Required information [The following information applies to the questions displayed below.] Laker Company reported the following January purchases...

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Accounting

Required information
[The following information applies to the questionsdisplayed below.]

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

Date Activities Units Acquired at Cost Units sold at Retail
Jan. 1 Beginning inventory 175 units @ $ 10.00 = $ 1,750
Jan. 10 Sales 135 units @ $ 19.00
Jan. 20 Purchase 130 units @ $ 9.00 = 1,170
Jan. 25 Sales 140 units @ $ 19.00
Jan. 30 Purchase 275 units @ $ 8.00 = 2,200
Totals 580 units $ 5,120 275 units
Required:
The Company uses a periodic inventory system. For specificidentification, ending inventory consists of 305 units, where 275are from the January 30 purchase, 5 are from the January 20purchase, and 25 are from beginning inventory. Determine the costassigned to ending inventory and to cost of goods sold using(a) specific identification, (b) weightedaverage, (c) FIFO, and (d) LIFO.

Answer & Explanation Solved by verified expert

3.6 Ratings (635 Votes)

Specific Identification Weighted Average FIFO LIFO Ending Inventory 2495 2693 2470 2920 Cost of goods sold 2625 2428 2650 2200 Cost of goods available for sale Cost of goods sold Ending Inventory Specific Identification of units A Cost per unit Cost of goods available for sale of units sold B Cost per unit Cost of goods sold of units in See Answer

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Date		Activities	Units Acquired at Cost								Units sold at Retail
Jan.	1	Beginning inventory	175	units	@	$	10.00	=	$	1,750
Jan.	10	Sales										135	units	@	$	19.00
Jan.	20	Purchase	130	units	@	$	9.00	=		1,170
Jan.	25	Sales										140	units	@	$	19.00
Jan.	30	Purchase	275	units	@	$	8.00	=		2,200
		Totals	580	units					$	5,120		275	units