Exercise 5-3 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 information 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. Units sold at Retail Units Acquired at Cost 140 units @ $6.00 = $ 840 100 units @ $ 15 Date Activities Jan. 1 Beginning inventory Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase 60 units @ $5.00 = 300 80 units @ $ 15 180 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. Specific Identification Available for Sale Cost of Goods Sold Purchase Date Ending Inventory Ending Ending Cost Per Inventory- Inventory- Unit Units Cost Activity Unit Cost Units Units Sold Unit Cost COGS Jan. 1 Beginning inventory 140 Jan. 20 Purchase 60 Jan. 30 Purchase 1803 380 0 $ 0 0 $ 0 Weighted Average - Perpetual: Goods Purchased Inventory Balance Cost per Cost of Goods Sold # of Cost per Cost of Goods units unit Sold sold # of units Date Cost per unit # of units Inventory Balance unit January 1 140 @ $ 6.00 = $ 840.00 January 10 January 20 Average cost January 25 January 30 Totals Perpetual FIFO: Goods Purchased Cost of Goods Sold Inventory Balance Cost per Date # of units # of units sold Cost per Cost of Goods unit Sold # of units unit Cost per Inventory unit Balance $ $ 6.00 = 840.00 January 1 140 @ January 10 January 20 January 25 January 30 Totals Perpetual LIFO: Goods Purchased # of units Date Cost of Goods Sold # of units Cost per Cost of Goods sold unit Sold Cost per unit Inventory Balance Cost per Inventory # of units unit Balance $ 140 @ $ 6.00 840.00 January 1 = January 10 January 20 January 25 January 30 Totals