Exercise 5-3 Perpetual: Inventory costing methods LO P1 [The following informati
ID: 2395320 • Letter: E
Question
Exercise 5-3 Perpetual: Inventory costing methods LO P1 [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 180 units @ $ 7.60 = $ 1,368 Jan. 10 Sales 105 units @ $ 15.60 Jan. 20 Purchase 250 units @ $ 6.60 = 1,650 Jan. 25 Sales 175 units @ $ 15.60 Jan. 30 Purchase 120 units @ $ 5.60 = 672 Totals 550 units $ 3,690 280 units Required: The company uses a perpetual inventory system. For specific identification, ending inventory consists of 270 units, where 120 are from the January 30 purchase, 80 are from the January 20 purchase, and 70 are from beginning inventory.
Required:
The company uses a perpetual inventory system. For specific identification, ending inventory consists of 270 units, where 120 are from the January 30 purchase, 80 are from the January 20 purchase, and 70 are from beginning inventory.
Exercise 5-3 Part 1
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.)
Exercise 5-3 Part 2
Determine the cost assigned to ending inventory and to cost of goods sold using weighted average. (Round cost per unit to 2 decimal places.)
Exercise 5-3 Part 4
Exercise 5-3 Part 1
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.)
Exercise 5-3 Part 2
Determine the cost assigned to ending inventory and to cost of goods sold using weighted average. (Round cost per unit to 2 decimal places.)
Exercise 5-3 Part 3
Exercise 5-3 Part 4
The company uses a perpetual inventory system. For specific identification, ending inventory consists of 270 units, where 120 are from the January 30 purchase, 80 are from the January 20 purchase, and 70 are from beginning inventory.
Exercise 5-3 Part 1
1.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.)
Exercise 5-3 Part 2
2.Determine the cost assigned to ending inventory and to cost of goods sold using weighted average. (Round cost per unit to 2 decimal places.)
Determine the cost assigned to ending inventory and to cost of goods sold using FIFO. (Round cost per unit to 2 decimal places.)Exercise 5-3 Part 4
4. Determine the cost assigned to ending inventory and to cost of goods sold using LIFO. (Round cost per unit to 2 decimal places.)Exercise 5-3 Part 1
1.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.)
Exercise 5-3 Part 2
2.Determine the cost assigned to ending inventory and to cost of goods sold using weighted average. (Round cost per unit to 2 decimal places.)
Exercise 5-3 Part 3
3. Determine the cost assigned to ending inventory and to cost of goods sold using FIFO. (Round cost per unit to 2 decimal places.)Exercise 5-3 Part 4
4. Determine the cost assigned to ending inventory and to cost of goods sold using LIFO. (Round cost per unit to 2 decimal places.)Explanation / Answer
STATEMENT SHOWING INVENTORY RECORD UNDER SPECIFIC IDENTIFICATION METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ 1-Jan 180 7.6 1368 110 7.6 836 70 7.6 532 Purchasse 20-Jan 250 6.6 1650 170 6.6 1122 80 6.6 528 30-Jan 120 5.6 672 120 5.6 672 TOTAL 550 3690 280 1958 270 1732 STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL WEIGHTED AVERAGE METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ 1-Jan 180 7.6 1368 10-Jan 105 7.6 798 75 7.6 570 20-Jan 250 6.6 1650 75 7.6 570 250 6.6 1650 AVERAGE 325 6.83 2220 25-Jan 175 6.83 1195 150 6.83 1025 30-Jan 120 5.6 672 150 6.83 1025 120 5.6 672 AVERAGE 270 6.29 1697 TOTAL 370 2322 280 1993 270 6.29 1697 STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL FIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ 1-Jan 180 7.6 1368 10-Jan 105 7.6 798 75 7.6 570 20-Jan 250 6.6 1650 75 7.6 570 250 6.6 1650 25-Jan 75 7.6 570 100 6.6 660 150 6.6 990 30-Jan 120 5.6 672 150 6.6 990 120 5.6 672 TOTAL 370 2322 280 2028 270 1662 STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL LIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ 1-Jan 180 7.6 1368 10-Jan 105 7.6 798 75 7.6 570 20-Jan 250 6.6 1650 75 7.6 570 250 6.6 1650 25-Jan 175 6.6 1155 75 7.6 570 75 6.6 495 30-Jan 120 5.6 672 75 7.6 570 75 6.6 495 120 5.6 672 TOTAL 370 2322 280 1953 270 1737