heducat Question 7 of 10 value 1000 points Exercise 55A Peri

heducat Question 7 (of 10) value 10.00 points Exercise 5-5A Periodic: Inventory costing LO P Laker Company reported the following January purchases and sales data for its only product Units Sold at Retail 100 units @$15 80 units @S15 Activities Date Jan. 1 Beginning inventory 140 units@$6.00 840 Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase 60 units $5.00 300 180 units@ $4.50810 380 units Totals 1,950 180 units Laker 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, (Round cost per unit to 3 decimal places.)

Solution

(1) Specific Identification :-

Specific Identification

Cost of Goods Available for Sale

Cost of Goods Sold

Ending Inventory

# of units

Cost pu

Cost of Goods Available for Sale

# of units

Cost pu

Cost of Goods Sold

# of units

Cost pu

Ending Inventory

Beginning Inventory

140

6

840

125

6

750

15

6

90

Purchases:-

Jan 20

60

5

300

55

5

275

5

5

25

Jan 30

180

4.50

810

-

4.50

-

180

4.50

810

Total

380

1950

180

1025

200

925

(2) Average cost :-

Average cost

Cost of Goods Available for Sale

Cost of Goods Sold

Ending Inventory

# of units

Cost pu

Cost of Goods Available for Sale

# of units

Cost pu

Cost of Goods Available for Sale

# of units

Cost pu

Cost of Goods Available for Sale

Beginning Inventory

140

6

840

   180             5.13            924

    200            5.13                 1026

Purchases:-

Jan 20

60

5

300

Jan 30

180

4.50

810

Total

380

1950

180

924

200

1026

Avg cost per unit = Total cost available for sale/No of units available for sale

     = 1950/380 = 5.13

(3) Periodic FIFO :-

FIFO

Cost of Goods Available for Sale

Cost of Goods Sold-Periodic FIFO

Ending Inventory-Periodic FIFO

# of units

Cost pu

Cost of Goods Available for Sale

# of units

Cost pu

Cost of Goods Sold-Periodic FIFO

# of units

Cost pu

Ending Inventory-Periodic FIFO

Beginning Inventory

140

6

840

140

6

840

-

6

-

Purchases:-

August 8

60

5

300

40

5

200

20

5

100

August 18

180

4.50

810

-

4.50

-

180

4.50

810

Total

380

1950

180

1040

200

910

(4) Periodic LIFO :-

LIFO

Cost of Goods Available for Sale

Cost of Goods Sold-Periodic LIFO

Ending Inventory-Periodic LIFO

# of units

Cost pu

Cost of Goods Available for Sale

# of units

Cost pu

Cost of Goods Sold-Periodic LIFO

# of units

Cost pu

Ending Inventory-Periodic LIFO

Beginning Inventory

140

6

840

-

6

-

140

6

840

Purchases:-

August 8

60

5

300

-

5

-

60

5

300

August 18

180

4.50

810

180

4.50

810

-

4.50

-

Total

380

1950

180

810

200

1140

Specific Identification	Cost of Goods Available for Sale	Cost of Goods Sold	Ending Inventory
	# of units	Cost pu	Cost of Goods Available for Sale	# of units	Cost pu	Cost of Goods Sold	# of units	Cost pu	Ending Inventory
Beginning Inventory	140	6	840	125	6	750	15	6	90
Purchases:-
Jan 20	60	5	300	55	5	275	5	5	25
Jan 30	180	4.50	810	-	4.50	-	180	4.50	810
Total	380		1950	180		1025	200		925