Homework SourseThe following information applies to the questions displayed
[The following information applies to the questions displayed below.]
Required:
Complete the table to determine the cost assigned to ending inventory and cost of goods sold using specific identification. (Round cost per unit to 2 decimal places.)
plese explain the answers
| Laker Company reported the following January purchases and sales data for its only product. |
Solution
Ending inventory consists of 480 units[ 970-490] , Assuming 260 are from the January 30 purchase, 75 are from the January 20 purchase, and 145 are from beginning inventory
| 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 | 320 | 10.40 | 175 | 10.40 | 1820 | 145 | 10.40 | 1508 |
| Jan. 20 | Purchase | 390 | 9.4 | 315 | 9.40 | 2961 | 75 | 9.40 | 705 |
| Jan. 30 | Purchase | 260 | 8.4 | 0 | 8.40 | 0 | 260 | 8.40 | 2184 |
| 970 | $4781 | $4397 |
![[The following information applies to the questions displayed below.] Required: Complete the table to determine the cost assigned to ending inventory and cost o](/WebImages/4/the-following-information-applies-to-the-questions-displayed-978673-1761502229-0.webp "[The following information applies to the questions displayed below.] Required: Complete the table to determine the cost assigned to ending inventory and cost o")
