Application of LIFO, FIFO and Weighted Average method of Inventory System.
Lakia Corporation reported the following current-year purchases and sales data for its only product:
|
Date
|
Activities
|
Units Aquired at Cost
|
Units sold at retail
|
|
Jan. 1
|
Beginning Inventory
|
120 units @ $6=$720
|
|
|
Jan. 10
|
Sales
|
|
70 units @ $15
|
|
Mar. 7
|
Purchases
|
200 units @$5.50=1,100
|
|
|
Mar. 15
|
Sales
|
|
125 units @ $15
|
|
July 28
|
Purchase
|
500 units@ $5=2,500
|
|
|
Oct. 3
|
Purchase
|
375 units @ $4.40=1,650
|
|
|
Oct. 5
|
Sales
|
|
600 units @ $15
|
|
Dec.19
|
Purchase
|
100 units @ $4.10=410
|
|
|
Totals
|
1,295 units $6,380
|
795 units
|
|
Lakia uses a perpetual inventory system. Ending inventory consists of 500 units, 400 from the July 28 purchase and 100 from the December 19 purchase. 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