[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 |
260 |
units |
@ |
$ |
9.20 |
= |
$ |
2,392 |
|
|
|
|
|
|
|
| Jan. |
10 |
Sales |
|
|
|
|
|
|
|
|
|
145 |
units |
@ |
$ |
17.20 |
|
| Jan. |
20 |
Purchase |
330 |
units |
@ |
$ |
8.20 |
= |
|
2,706 |
|
|
|
|
|
|
|
| Jan. |
25 |
Sales |
|
|
|
|
|
|
|
|
|
255 |
units |
@ |
$ |
17.20 |
|
| Jan. |
30 |
Purchase |
200 |
units |
@ |
$ |
7.20 |
= |
|
1,440 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Totals |
790 |
units |
|
|
|
|
$ |
6,538 |
|
400 |
units |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Required:
|
The Company uses a perpetual inventory system. For specific
identification, ending inventory consists of 390 units, where 200
are from the January 30 purchase, 80 are from the January 20
purchase, and 110 are from beginning inventory.
| 4. |
Determine the cost assigned to
ending inventory and to cost of goods sold using LIFO.
|
|
| Perpetual LIFO: |
|
Goods Purchased |
Cost of Goods Sold |
Inventory Balance |
|
Date |
# of units |
|
Cost per unit |
# of units sold |
Cost per unit |
Cost of Goods Sold |
# of units |
Cost per unit |
Inventory Balance |
| January 1 |
|
|
|
|
|
|
|
|
260 |
@ |
$9.20 |
= |
$2,392.00 |
|
| January 10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| January 20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| January 25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| January 30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Totals |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|