[The following information applies to the questions displayed below.] 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 165 units @ $ 9.00 = $ 1,485 Jan. 10 Sales 125 units @ $ 18.00 Jan. 20 Purchase 110 units @ $ 8.00 = 880 Jan. 25 Sales 105 units @ $ 18.00 Jan. 30 Purchase 230 units @ $ 7.50 = 1,725 Totals 505 units $ 4,090 230 units Required: The Company uses a periodic inventory system. For specific identification, ending inventory consists of 275 units, where 230 are from the January 30 purchase, 5 are from the January 20 purchase, and 40 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. FIFO LIFO Determine the cost assigned to ending inventory and to cost of goods sold using FIFO. c) FIFO Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory # of units Cost per unit Cost of Goods Available for Sale # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory Beginning inventory Purchases: Jan. 20 Jan. 30 Total 0 $0 0 $0 0 $0 LIFO Determine the cost assigned to ending inventory and to cost of goods sold using LIFO. d) LIFO Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory # of units Cost per unit Cost of Goods Available for Sale # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory Beginning inventory Purchases: Jan. 20 Jan. 30 Total 0 $0 0 $0 0 $0

[The following information applies to the questions displayed below.] 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 165 units @ $ 9.00 = $ 1,485 Jan. 10 Sales 125 units @ $ 18.00 Jan. 20 Purchase 110 units @ $ 8.00 = 880 Jan. 25 Sales 105 units @ $ 18.00 Jan. 30 Purchase 230 units @ $ 7.50 = 1,725 Totals 505 units $ 4,090 230 units Required: The Company uses a periodic inventory system. For specific identification, ending inventory consists of 275 units, where 230 are from the January 30 purchase, 5 are from the January 20 purchase, and 40 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. FIFO LIFO Determine the cost assigned to ending inventory and to cost of goods sold using FIFO. c) FIFO Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory # of units Cost per unit Cost of Goods Available for Sale # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory Beginning inventory Purchases: Jan. 20 Jan. 30 Total 0 $0 0 $0 0 $0 LIFO Determine the cost assigned to ending inventory and to cost of goods sold using LIFO. d) LIFO Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory # of units Cost per unit Cost of Goods Available for Sale # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory Beginning inventory Purchases: Jan. 20 Jan. 30 Total 0 $0 0 $0 0 $0

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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[The following information applies to the questions displayed below.]

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	165	units	@	$	9.00	=	$	1,485
Jan.	10	Sales									125	units	@	$	18.00
Jan.	20	Purchase	110	units	@	$	8.00	=		880
Jan.	25	Sales									105	units	@	$	18.00
Jan.	30	Purchase	230	units	@	$	7.50	=		1,725
		Totals	505	units					$	4,090	230	units

Required:

The Company uses a periodic inventory system. For specific identification, ending inventory consists of 275 units, where 230 are from the January 30 purchase, 5 are from the January 20 purchase, and 40 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.

FIFO
LIFO

Determine the cost assigned to ending inventory and to cost of goods sold using FIFO.

c) FIFO	Cost of Goods Available for Sale	Cost of Goods Sold	Ending Inventory
	# of units	Cost per unit	Cost of Goods Available for Sale	# of units sold	Cost per unit	Cost of Goods Sold	# of units in ending inventory	Cost per unit	Ending Inventory
Beginning inventory
Purchases:
Jan. 20
Jan. 30
Total	0		$0	0		$0	0		$0

LIFO

Determine the cost assigned to ending inventory and to cost of goods sold using LIFO.

d) LIFO	Cost of Goods Available for Sale	Cost of Goods Sold	Ending Inventory
	# of units	Cost per unit	Cost of Goods Available for Sale	# of units sold	Cost per unit	Cost of Goods Sold	# of units in ending inventory	Cost per unit	Ending Inventory
Beginning inventory
Purchases:
Jan. 20
Jan. 30
Total	0		$0	0		$0	0		$0

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