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

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Question

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

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


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

JAN 25

JAN 30

TOTALS

Answer & Explanation Solved by verified expert
4.1 Ratings (545 Votes)

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-01 240 @ $16.50 = $3960.00
Jan-10 190 $      16.50 $ 3,135.00 50@ $      16.50= $    825.00
Jan-20 170 $      15.50 50@ $      16.50= $    825.00
170@ $      15.50= $ 2,635.00
220 $ 3,460.00
Jan-25 50 $      16.50 $    825.00
140 $      15.50 $ 2,170.00 30@ $      15.50= $    465.00
Jan-30 380 $      15.00 30@ $      15.50= $    465.00
380@ $      15.00= $ 5,700.00
TOTALS 380 6130 410 $ 6,165.00

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