Question

[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	320	units	@	$	10.40	=	$	3,328
Jan.	10	Sales										175	units	@	$	18.40
Jan.	20	Purchase	390	units	@	$	9.40	=		3,666
Jan.	25	Sales										315	units	@	$	18.40
Jan.	30	Purchase	260	units	@	$	8.40	=		2,184
		Totals	970	units					$	9,178		490	units

Required:

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.)

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
Jan. 20	Purchase	390
Jan. 30	Purchase	260
		970				$0			$0

plese explain the answers

Answer 1

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