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 | 240 | units | @ | $ | 16.50 | = | $ | 3,960 | | | | | | | |
Jan. | 10 | | Sales | | | | | | | | | | 190 | units | @ | $ | 25.50 | |
Jan. | 20 | | Purchase | 170 | units | @ | $ | 15.50 | = | | 2,635 | | | | | | | |
Jan. | 25 | | Sales | | | | | | | | | | 190 | units | @ | $ | 25.50 | |
Jan. | 30 | | Purchase | 380 | units | @ | $ | 15.00 | = | | 5,700 | | | | | | | |
| | | Totals | 790 | units | | | | | $ | 12,295 | | 380 | units | | | | |
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The Company uses a perpetual inventory system. For specificidentification, ending inventory consists of 410 units, where 380are from the January 30 purchase, 5 are from the January 20purchase, and 25 are from beginning inventory.
3. Determine the cost assigned to endinginventory and to cost of goods sold using FIFO.
| GOODS PURCHASED | COST OF GOODS SOLD | INVENTORY BALANCE |
DATE | # OF UNITS | COST PER UNIT | # OF UNITS SOLD | COST PER UNIT | COST OF GOODS SOLD | # OF UNITS | COST PER UNIT | INVENTORY BALANCE |
JAN 1 | | | | | | 240 @ | $16.50 = | $3960.00 |
JAN 10 | | | | | | | | |
JAN 20 | | | | | | | | |
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JAN 25 | | | | | | | | |
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JAN 30 | | | | | | | | |
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TOTALS | | | | | | | | |
