Laker Company reported the following January purchases and sales data for its only product. Date ActivitiesUnits Acquired at CostUnits sold at RetailJan.1 Beginning inventory160units@$8.50 =$1,360 Jan.10 Sales 120units@$17.50 Jan.20 Purchase100units@$7.50 = 750 Jan.25 Sales 120units@$17.50 Jan.30 Purchase220units@$7.00= 1,540 Totals480units $3,650 240units The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 240 units, where 220 are from the January 30 purchase, 5 are from the January 20 purchase, and 15 are from beginning inventory. Required:1. Determine the cost assigned to ending inventory and to cost of goods sold using weighted average.2. Determine the cost assigned to ending inventory and to cost of goods sold using FIFO.3. Determine the cost assigned to ending inventory and to cost of goods sold using LIFO.(only need the ones in yellow) Weighted Average - Perpetual:Goods PurchasedCost of Goods SoldInventory Balance# ofunitsCost perunit# ofunitssoldCost per Cost of GoodsunitCost perunitInventoryBalanceDate# of unitsSoldJanuary 1160 @ $ 8.50 =$ 1,360.00January 10120 @ $ 8.50 =$ 1,020.00January 20100 @ $ 7.50@100 @ $ 7.50 =750.00Average cost100 @750.00January 25120 @January 30220 @ $ 7.00220 @ $ 7.00 =1,540.00Totals$ 1,020.00220 @%24 Perpetual FIFO:Perpetual LIFO:Goods PurchasedCost of Goods SoldInventory BalanceCost of Goods SoldCost per Cost of GoodsSoldGoods PurchasedInventory BalanceCost perunit# of# of units# ofunitsCost perunit# of unitssoldCost perunitCost perunitCost perunitInventoryBalanceCost of GoodsInventoryBalanceDate# of unitsDate# of unitsSoldunitssoldunitJanuary 1160 @$ 8.50 =$ 1,360.00January 1160 @$ 8.50 =$ 1,360.00January 10January 10January 20January 20January 25January 25January 30January 30TotalsTotals

Name: Laker Company reported the following January purchases and sales data
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: Laker Company reported the following January purchases and sales data for its only product. Date ActivitiesUnits Acquired at CostUnits sold at RetailJan.1 Beginning inventory160units@$8.50 =$1,360 Jan.10 Sales 120units@$17.50 Jan.20 Pur

Solution- Weighted average method Date Goods…

Answered: Laker Company reported the following…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 7PA: Use the weighted-average (AVG) cost allocation method, with perpetual inventory updating, to...

See similar textbooks

Related questions

Concept explainers

Topic Video

Question

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

Date		Activities	Units Acquired at Cost	Units sold at Retail
Jan.	1		Beginning inventory	160	units	@	$	8.50	=	$	1,360
Jan.	10		Sales									120	units	@	$	17.50
Jan.	20		Purchase	100	units	@	$	7.50	=		750
Jan.	25		Sales									120	units	@	$	17.50
Jan.	30		Purchase	220	units	@	$	7.00	=		1,540
			Totals	480	units					$	3,650	240	units

The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 240 units, where 220 are from the January 30 purchase, 5 are from the January 20 purchase, and 15 are from beginning inventory.

Required:
1. Determine the cost assigned to ending inventory and to cost of goods sold using weighted average.
2. Determine the cost assigned to ending inventory and to cost of goods sold using FIFO.
3. Determine the cost assigned to ending inventory and to cost of goods sold using LIFO.

(only need the ones in yellow)

Weighted Average - Perpetual:
Goods Purchased
Cost of Goods Sold
Inventory Balance
# of
units
Cost per
unit
# of
units
sold
Cost per Cost of Goods
unit
Cost per
unit
Inventory
Balance
Date
# of units
Sold
January 1
160 @ $ 8.50 =
$ 1,360.00
January 10
120 @ $ 8.50 =
$ 1,020.00
January 20
100 @ $ 7.50
@
100 @ $ 7.50 =
750.00
Average cost
100 @
750.00
January 25
120 @
January 30
220 @ $ 7.00
220 @ $ 7.00 =
1,540.00
Totals
$ 1,020.00
220 @
%24

Perpetual FIFO:
Perpetual LIFO:
Goods Purchased
Cost of Goods Sold
Inventory Balance
Cost of Goods Sold
Cost per Cost of Goods
Sold
Goods Purchased
Inventory Balance
Cost per
unit
# of
# of units
# of
units
Cost per
unit
# of units
sold
Cost per
unit
Cost per
unit
Cost per
unit
Inventory
Balance
Cost of Goods
Inventory
Balance
Date
# of units
Date
# of units
Sold
units
sold
unit
January 1
160 @
$ 8.50 =
$ 1,360.00
January 1
160 @
$ 8.50 =
$ 1,360.00
January 10
January 10
January 20
January 20
January 25
January 25
January 30
January 30
Totals
Totals

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions