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Required information[The following information applies to the questions displayed below.]Laker Company reported the following January purchases and sales data for its only product.Units sold atActivitiesUnits Acquired at Cost140 units $6.00 = $RetailDate1 Beginning inventory840Jan100 units @ $ 15Jan. 10 Sales60 units @ $5.00 =300Jan. 20 Purchase80 units @ $ 15Jan. 25 Sales180 units @810$4.50Jan. 30 Purchase380 units$1,950180 unitsTotalsRequired:The Company uses a periodic inventory system. For specific identification, ending inventory consists of 200 units, where 180 are fromthe January 30 purchase, 5 are from the January 20 purchase, and 15 are from beginning inventory. Determine the cost assigned toending inventory and to cost of goods sold using (a) specific identification, (b) weighted average, (c) FIFO, and (d) LIFO WeightedAverageSpecific IdLIFOFIFODetermine the cost assigned to ending inventory and to cost of goods sold using FIFO.c) FIFOEnding InventoryCost of Goods Available for SaleCost of Goods SoldCost of Goods#of units# of units#of units Cost perunitCost perCost ofGoods SoldEndingper unit InventoryCostin endingAvailable forsoldunitSaleinventory6.00 $Beginning inventory140 $$6.00140840840Purchases:5.00Jan. 20605.00300603004.50Jan. 301808101808104.50380$1,1101,950840240Total140$$Weighted AverageLIFOEA

Question
Required information
[The following information applies to the questions displayed below.]
Laker Company reported the following January purchases and sales data for its only product.
Units sold at
Activities
Units Acquired at Cost
140 units $6.00 = $
Retail
Date
1 Beginning inventory
840
Jan
100 units @ $ 15
Jan. 10 Sales
60 units @ $5.00 =
300
Jan. 20 Purchase
80 units @ $ 15
Jan. 25 Sales
180 units @
810
$4.50
Jan. 30 Purchase
380 units
$1,950
180 units
Totals
Required:
The Company uses a periodic inventory system. For specific identification, ending inventory consists of 200 units, where 180 are from
the January 30 purchase, 5 are from the January 20 purchase, and 15 are from beginning inventory. Determine the cost assigned to
ending inventory and to cost of goods sold using (a) specific identification, (b) weighted average, (c) FIFO, and (d) LIFO
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Required information [The following information applies to the questions displayed below.] Laker Company reported the following January purchases and sales data for its only product. Units sold at Activities Units Acquired at Cost 140 units $6.00 = $ Retail Date 1 Beginning inventory 840 Jan 100 units @ $ 15 Jan. 10 Sales 60 units @ $5.00 = 300 Jan. 20 Purchase 80 units @ $ 15 Jan. 25 Sales 180 units @ 810 $4.50 Jan. 30 Purchase 380 units $1,950 180 units Totals Required: The Company uses a periodic inventory system. For specific identification, ending inventory consists of 200 units, where 180 are from the January 30 purchase, 5 are from the January 20 purchase, and 15 are from beginning inventory. Determine the cost assigned to ending inventory and to cost of goods sold using (a) specific identification, (b) weighted average, (c) FIFO, and (d) LIFO

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Weighted
Average
Specific Id
LIFO
FIFO
Determine the cost assigned to ending inventory and to cost of goods sold using FIFO.
c) FIFO
Ending Inventory
Cost of Goods Available for Sale
Cost of Goods Sold
Cost of Goods#of units
# of units
#of units Cost per
unit
Cost per
Cost of
Goods Sold
Ending
per unit Inventory
Cost
in ending
Available for
sold
unit
Sale
inventory
6.00 $
Beginning inventory
140 $
$
6.00
140
840
840
Purchases:
5.00
Jan. 20
60
5.00
300
60
300
4.50
Jan. 30
180
810
180
810
4.50
380
$
1,110
1,950
840
240
Total
140
$
$
Weighted Average
LIFO
EA
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Weighted Average Specific Id LIFO FIFO Determine the cost assigned to ending inventory and to cost of goods sold using FIFO. c) FIFO Ending Inventory Cost of Goods Available for Sale Cost of Goods Sold Cost of Goods#of units # of units #of units Cost per unit Cost per Cost of Goods Sold Ending per unit Inventory Cost in ending Available for sold unit Sale inventory 6.00 $ Beginning inventory 140 $ $ 6.00 140 840 840 Purchases: 5.00 Jan. 20 60 5.00 300 60 300 4.50 Jan. 30 180 810 180 810 4.50 380 $ 1,110 1,950 840 240 Total 140 $ $ Weighted Average LIFO EA

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check_circleAnswer
Step 1

Periodic inventory system:

The method or system of recording the transaction related to inventory occasionally or periodically is referred to as periodic inventory system.

 

First-in-First-Out (FIFO):

 

In First-in-First-Out method, the costs of the initially purchased items are considered as cost of goods sold, for the items which are sold first. The value of the ending inventory consists of the recent purchased items.

Step 2

Calculate the ending inventory using FIFO.

...
Ending
Cost (S) Inventory (S)
Unit
FIFO
Units
January 30
January 20
180
$4.5
810
20
5
100
Total
200
910
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Ending Cost (S) Inventory (S) Unit FIFO Units January 30 January 20 180 $4.5 810 20 5 100 Total 200 910

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