Use the following information for the Exercises below The fo

Use the following information for the Exercises below.

[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

140

units

@

$

6.00

=

$

840

Jan.

10

Sales

100

units

@

$

15

Jan.

20

Purchase

60

units

@

$

5.00

=

300

Jan.

25

Sales

80

units

@

$

15

Jan.

30

Purchase

180

units

@

$

4.50

=

810

Totals

380

units

$

1,950

180

units

The Company uses a perpetual 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.

            Exercise 6-3 Perpetual: Inventory costing methods LO P1

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.

Required 3

Required 4

Complete the table to determine the cost assigned to ending inventory and cost of goods sold using specific identification.

Specific Identification

Available for Sale

Cost of Goods Sold

Ending Inventory

Purchase Date

Activity

Units

Unit Cost

Units Sold

Unit Cost

COGS

Ending Inventory- Units

Cost Per Unit

Ending Inventory- Cost

Jan. 1

Beginning inventory

140

Jan. 20

Purchase

60

Jan. 30

Purchase

180

380

0

$0

0

$0

Determine the cost assigned to ending inventory and to cost of goods sold using weighted average. (Round cost per unit to 2 decimal places.)

Weighted Average - Perpetual:

Goods Purchased

Cost of Goods Sold

Inventory Balance

Date

# of units

Cost per unit

# of units sold

Cost per unit

Cost of Goods Sold

# of units

Cost per unit

Inventory Balance

January 1

140

@

$6.00

=

$840.00

January 10

January 20

Average cost

January 25

January 30

Totals

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

Perpetual FIFO:

Goods Purchased

Cost of Goods Sold

Inventory Balance

Date

# of units

Cost per unit

# of units sold

Cost per unit

Cost of Goods Sold

# of units

Cost per unit

Inventory Balance

January 1

140

@

$6.00

=

$840.00

January 10

January 20

January 25

January 30

Totals

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

Perpetual LIFO:

Goods Purchased

Cost of Goods Sold

Inventory Balance

Date

# of units

Cost per unit

# of units sold

Cost per unit

Cost of Goods Sold

# of units

Cost per unit

Inventory Balance

January 1

140

@

$6.00

=

$840.00

January 10

January 20

January 25

January 30

Totals

Date	Activities	Units Acquired at Cost	Units sold at Retail
Jan.	1	Beginning inventory	140	units	@	$	6.00	=	$	840
Jan.	10	Sales										100	units	@	$	15
Jan.	20	Purchase	60	units	@	$	5.00	=		300
Jan.	25	Sales										80	units	@	$	15
Jan.	30	Purchase	180	units	@	$	4.50	=		810
		Totals	380	units					$	1,950		180	units

Solution

Cost assigned to ending inventory and cost of goods sold using specific identification.

Available for Sale

Cost of Goods Sold

Ending Inventory

Purchase Date

Activity

Units

Unit Cost

Units Sold

Unit Cost

COGS

Ending Inventory- Units

Cost Per Unit

Ending Inventory- Cost

Jan. 1

Beginning inventory

140

$6.00

125

$6.00

$750.00

15

$6.00

$90.00

Jan. 20

Purchase

60

$5.00

55

$5.00

$275.00

5

$5.00

$25.00

Jan. 30

Purchase

180

$4.50

0

$4.50

$0.00

180

$4.50

$810.00

380

180

$1,025.00

200

$925.00

Cost assigned to ending inventory and to cost of goods sold using weighted average. (Round cost per unit to 2 decimal places.)

Weighted Average - Perpetual:

Goods Purchased

Cost of Goods Sold

Inventory Balance

Date

# of units

Cost per unit

# of units sold

Cost per unit

Cost of Goods Sold

# of units

Cost per unit

Inventory Balance

1-Jan

140

$6.00

140

@

$6.00

=

$840.00

10-Jan

100

$6.00

$600.00

40

$6.00

$240.00

20-Jan

60

$5.00

40

$6.00

$240.00

60

$    5.00

$           300.00

Average cost

100

$5.40

$540.00

25-Jan

80

$                5.40

$              432.00

20

$5.40

$108.00

30-Jan

180

4.50

20

$5.50

$110.00

180

$4.50

$810.00

Totals

380

180

$1,032.00

200

4.6

$920.00

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

Perpetual FIFO:

Goods Purchased

Cost of Goods Sold

Inventory Balance

Date

# of units

Cost per unit

# of units sold

Cost per unit

Cost of Goods Sold

# of units

Cost per unit

Inventory Balance

1-Jan

140

$6.00

140

@

$6.00

=

$840.00

10-Jan

100

$6.00

$600.00

40

$6.00

$240.00

20-Jan

60

$5.00

40

$6.00

$240.00

60

$5.00

$300.00

100

$540.00

25-Jan

40

$6.00

$240.00

40

$5.00

$200.00

20

$5.00

$100.00

30-Jan

180

$4.50

20

$5.00

$100.00

180

$4.50

$810.00

Totals

380

180

$1,040.00

200

$910.00

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

Perpetual LIFO:

Goods Purchased

Cost of Goods Sold

Inventory Balance

Date

# of units

Cost per unit

# of units sold

Cost per unit

Cost of Goods Sold

# of units

Cost per unit

Inventory Balance

1-Jan

140

$6.00

140

@

$6.00

=

$840.00

10-Jan

100

$6.00

$600.00

40

$6.00

$240.00

20-Jan

60

$5.00

40

$6.00

$240.00

60

$5.00

$300.00

100

$540.00

25-Jan

60

$5.00

$300.00

20

$6.00

$120.00

20

$6.00

$120.00

30-Jan

180

$4.50

20

$6.00

$120.00

180

$4.50

$810.00

Totals

380

180

$1,020.00

200

$930.00

	Cost assigned to ending inventory and cost of goods sold using specific identification.
		Available for Sale	Cost of Goods Sold	Ending Inventory
	Purchase Date	Activity	Units	Unit Cost	Units Sold	Unit Cost	COGS	Ending Inventory- Units	Cost Per Unit	Ending Inventory- Cost
	Jan. 1	Beginning inventory	140	$6.00	125	$6.00	$750.00	15	$6.00	$90.00
	Jan. 20	Purchase	60	$5.00	55	$5.00	$275.00	5	$5.00	$25.00
	Jan. 30	Purchase	180	$4.50	0	$4.50	$0.00	180	$4.50	$810.00
			380		180		$1,025.00	200		$925.00