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 IdFIFOLIFODetermine the cost assigned to ending inventory and to cost of goods sold using weighted average. (Round cost per unit to 2 decimal places.)b) Average CostCost of Goods Available for SaleCost of Goods SoldEnding InventoryAverage Cost of Goods |# of units# of units Averagein endinginventory per unitAverageCost perUnitEndingInventoryCost of# of units Cost perunitAvailable forCostsoldGoods SoldSaleBeginning inventory140840Purchases:Jan. 2060300Jan. 30180810$$$Total3801,950Specific IdFIFOEA

Question
Asked Oct 3, 2019
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
FIFO
LIFO
Determine the cost assigned to ending inventory and to cost of goods sold using weighted average. (Round cost per unit to 2 decimal places.)
b) Average Cost
Cost of Goods Available for Sale
Cost of Goods Sold
Ending Inventory
Average Cost of Goods |# of units
# of units Average
in ending
inventory per unit
Average
Cost per
Unit
Ending
Inventory
Cost of
# of units Cost per
unit
Available for
Cost
sold
Goods Sold
Sale
Beginning inventory
140
840
Purchases:
Jan. 20
60
300
Jan. 30
180
810
$
$
$
Total
380
1,950
Specific Id
FIFO
EA
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Weighted Average Specific Id FIFO LIFO Determine the cost assigned to ending inventory and to cost of goods sold using weighted average. (Round cost per unit to 2 decimal places.) b) Average Cost Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory Average Cost of Goods |# of units # of units Average in ending inventory per unit Average Cost per Unit Ending Inventory Cost of # of units Cost per unit Available for Cost sold Goods Sold Sale Beginning inventory 140 840 Purchases: Jan. 20 60 300 Jan. 30 180 810 $ $ $ Total 380 1,950 Specific Id FIFO EA

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check_circleExpert Solution
Step 1

Periodic inventory system:

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

Weighted-average cost method:

Under Weighted average cost method, the company calculates a new average cost after every purchase is made. It is determined by dividing the cost of goods available for sale by the units on hand.

Cost of goods sold:

Cost of goods sold is the accumulate total of all direct cost incurred in manufacturing the goods or the products which has been sold during a period. Cost of goods sold involves direct material, direct labor, and manufacturing overheads.

Ending Inventory:

It represents the quantity and price of the goods unsold and laying at the store at the end of a particular period.

Step 2

Calculate total purchase:

Unit
Total
Particular
Unit
cost (S)cost (S)
Beginning Inventory
January 20
January 30
$6
$840
140
60
300
180
72
810
Goods Available for Sale
$1,950
380
Less: Cost of goods sold
Ending inventory
180
200
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Unit Total Particular Unit cost (S)cost (S) Beginning Inventory January 20 January 30 $6 $840 140 60 300 180 72 810 Goods Available for Sale $1,950 380 Less: Cost of goods sold Ending inventory 180 200

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Step 3

Determine average unit co...

Average Unit cost = Goods avaivable for sale
Total Units
S1,950
380
=S5.13
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Average Unit cost = Goods avaivable for sale Total Units S1,950 380 =S5.13

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