Question - Liberty 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 @ $7.00 = $980
|
|
|
Jan. 10
|
Sales
|
|
90 units @ $15
|
|
Jan. 20
|
Purchase
|
220 units @ $6.00 = 1,320
|
|
|
Jan. 25
|
Sales
|
|
145 units @ $15
|
|
Jan. 30
|
Purchase
|
100 units @ $5.00 = 500
|
|
|
Total
|
460 units = $2,800
|
235 units
|
Liberty uses a perpetual inventory system. Ending inventory consists of 225 units, 100 from the January 30 purchase, 80 from the January 20 purchase, and 45 from beginning inventory.
Requirement 1: Determine the cost assigned to ending inventory and to cost of goods sold using specific identification.
Requirement 2: Determine the cost assigned to ending inventory and to cost of goods sold using weighted average.
Requirement 3: Determine the cost assigned to ending inventory and to cost of goods sold using FIFO.
Requirement 4: Determine the cost assigned to ending inventory and to cost of goods sold using LIFO.