Laker Company reported the following January purchases and sales data for its only product.

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

160

units

@ $7.20

=

$

1,152

Jan.

10

Sales

95

units

@ $15.20

Jan.

20

Purchase

230

units

@ $6.20

=

1,426

Jan.

25

Sales

155

units

@ $15.20

Jan.

30

Purchase

100

units

@ $5.20

=

520

Totals

490

units

$

3,098

250

units

  
Required:

The Company uses a periodic inventory system. For specific identification, ending inventory consists of 240 units, where 100 are from the January 30 purchase, 80 are from the January 20 purchase, and 60 are from beginning inventory. 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. Explanation: Ending Inventory Cost of Goods Sold  (a) Specific identification      (100 × $5.20) + (80 × $6.20) + (60 × $7.20) $ 1,448        $3,098 – $1,448 $ 1,650    (b) Weighted average      ($3,098 / 490 units  = $6.322* average cost per unit)      240 × $6.322 $ 1,517*       250 × $6.322 $ 1,581*   (c) FIFO      (100 × $5.20) + (140 × $6.20) $ 1,388        (160 × $7.20) +  (90 × $6.20) $ 1,710    (d) LIFO      (160 × $7.20) + (80 × $6.20) $ 1,648        (100 × $5.20) + (150 × $6.20) $ 1,450   *rounded.