Principles of Financial Accounting.
24th Edition
ISBN: 9781260158601
Author: Wild
Publisher: MCG
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Textbook Question
Chapter 6, Problem 3E
Perpetual: Inventory costing methods P1
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 | 140 units @ $6.00 = $ 840 | |
Jan. 10 | Sales | 100 units #$15 | |
Jan. 20 | Purchase | 60 units @ $5.00 = 300 | |
Jan. 25 | Sales | 80 units ^ $15 | |
Jan. 30 | Purchase | 180 units @$4.50= 810 | |
Totals | 380 units $1,950 | 180 units |
Required
The company uses a perpetual inventory system. 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 per unit costs and inventory amounts to cents.) 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.
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Principles of Financial Accounting.
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