Exercise 5-5A Periodic: Inventory costing LO P1 Laker Company reported the follo
ID: 2450910 • Letter: E
Question
Exercise 5-5A Periodic: Inventory costing LO P1 Laker Company reported the following January purchases and sales data for its only product. Units Sold at Retail 95 units @$15.20 155 units @$15.20 Date Jan. 1 Beginning inventory Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase Activities Units Acquired at Cost 160 units @ $7.20 = $1.152 230 units $6.201,426 100 units @$5.20 520 490 units Totals $3,098 250 units Laker uses a periodic inventory system. For specific identification, ending inventory consists of 240 units, where 100 are from the January 30 purchase, 80 are from the January 20 purchase, and 60 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 your cost per unit to 3 decimal places.)Explanation / Answer
Specific Identification:
b) Average Cost:
Total Cost = 1,152 + 1,426 + 520 = $3,098
Total Units = 490
Average Cost = 3,098 / 490 = $6.322
Cost of Goods available for sale (Units) COG Available for sale (Cost per Unit) Cost of Goods sold (Units) Ending Inventory Beginning Inventory 160 7.20 100 60 Purchase Jan 20 230 6.20 150 80 Jan 30 100 5.20 0 100 Total 490 250 240