Laker Company reported the following January purchases and sales data for its only product. Date ActivitiesUnits Acquired at CostUnits sold at RetailJan.1 Beginning inventory150units@$7.50 =$1,125 Jan.10 Sales 110units@$16.50 Jan.20 Purchase80units@$6.50 = 520 Jan.25 Sales 90units@$16.50 Jan.30 Purchase200units@$6.00= 1,200 Totals430units $2,845 200units The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 230 units, where 200 are from the January 30 purchase, 5 are from the January 20 purchase, and 25 are from beginning inventory.Determine the cost assigned to ending inventory and to cost of goods sold using LIFO. (Round cost per unit to 2 decimal places.)Required:

Name: Laker Company reported the following January purchases and sales data
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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 inventory150units@$7.50 =$1,125 Jan.10 Sales 110units@$16.50 Jan.20 Pur

LIFO (Last-in-First-out) method is used for valuation of cost of goods sold and ending inventory. In…

Answered: Laker Company reported the following…

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter5: Inventories And Cost Of Goods Sold

Section: Chapter Questions

Problem 5.11E: Inventory Costing Methods VanderMeer Inc. reported the following information for the month of...

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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	150	units	@	$	7.50	=	$	1,125
Jan.	10		Sales									110	units	@	$	16.50
Jan.	20		Purchase	80	units	@	$	6.50	=		520
Jan.	25		Sales									90	units	@	$	16.50
Jan.	30		Purchase	200	units	@	$	6.00	=		1,200
			Totals	430	units					$	2,845	200	units

The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 230 units, where 200 are from the January 30 purchase, 5 are from the January 20 purchase, and 25 are from beginning inventory.

Determine the cost assigned to ending inventory and to cost of goods sold using LIFO. (Round cost per unit to 2 decimal places.)

Required:

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