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 215 units @ $ 14.00 = $ 3,010
Jan. 10 Sales 165 units @ $ 23.00
Jan. 20 Purchase 160 units @ $ 13.00 = 2,080
Jan. 25 Sales 190 units @ $ 23.00
Jan. 30 Purchase 330 units @ $ 12.50 = 4,125
Totals 705 units $ 9,215 355 units

The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 350 units, where 330 are from the January 30 purchase, 5 are from the January 20 purchase, and 15 are from beginning inventory.

Required:
1. Complete the table to determine the cost assigned to ending inventory and cost of goods sold using specific identification.

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.

Answer Link

anthougo anthougo · Answer 2 · 2021-10-28T14:29:55+02:00

The table is completed below. The cost of ending inventory is determined as $4,400. The cost of goods sold is $4,815.

Data and Calculations:

Date Description Units Cost Units Total Costs

Jan. 1 Beginning inventory 215 $ 14.00 $ 3,010

Jan. 10 Sales -165 $ 23.00

Jan. 20 Purchase 160 $ 13.00 2,080

Jan. 25 Sales -190 $ 23.00

Jan. 30 Purchase 330 $ 12.50 4,125

Totals 705 $ 9,215

Sales -355 units

Ending inventory 350 units

Cost of ending inventory based on specific identification:

Date Description Units Cost Units Total Costs

Jan. 30 Purchase 330 $ 12.50 $4,125

Jan. 20 Purchase 5 $ 13.00 65

Jan. 1 Beginning inventory 15 $ 14.00 210

Total cost of ending inventory 350 $4,400

Cost of goods sold = Cost of goods available for sale - cost of ending inventory

= $4,815 ($9,215 - $4,400)

Thus, the cost of ending inventory is $4,400 while the cost of goods sold is $4,815.

Learn more: https://brainly.com/question/20347004