Exercise - Perpetual: Inventory costing methods
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
|
155 units @ $8.00 = $1,240
|
|
|
Jan. 10
|
Sales
|
|
115 units @ $17.00
|
|
Jan. 20
|
Purchase
|
90 units @ $7.00 = 630
|
|
|
Jan. 25
|
Sales
|
|
$95 units @ $17.00
|
|
Jan. 30
|
Purchase
|
210 units @ $6.50 = 1,365
|
|
|
|
Totals
|
455 units $3,235
|
210 units
|
The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 245 units, where 210 are from the January 30 Purchase, 5 are from the January 20 Purchase, and 30 are from beginning inventory.
Required -
1. Complete the table to determine the cost assigned to ending inventory and cost of goods sold using specific identification.
2. Determine the cost assigned to ending inventory and to cost of goods sold using weighted average.
3. Determine the cost assigned to ending inventory and to cost of goods sold using FIFO.
4. Determine the cost assigned to ending inventory and to cost of goods sold using LIFO.