Question

# [The following information applies to the questions displayed below.] Laker Company reported the following January purchases...

[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

 Perpetual LIFO: Goods Purchased Cost of Goods Sold Date # of units Cost per unit # of units sold Cost per unit Cost of Goods Sold # of units Cost per unit Inventory Balance 1-Jan 260 9.2 2392 10-Jan 145 9.2 1334 115 9.2 1058 20-Jan 330 8.2 115 9.2 1058 330 8.2 2706 3764 25-Jan 255 8.2 2091 115 9.2 1058 75 8.2 615 1673 30-Jan 200 7.2 115 9.2 1058 75 8.2 615 200 7.2 1440 Totals 3425 3113

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