Beech Soda, Inc. uses a perpetual inventory system. Thecompany's beginning inventory of a particular product and itspurchases during the month of January were as follows:
Quantity Unit Cost TotalCost Beginning inventory (Jan. 1) 17 $ 8 $ 136 Purchase (Jan. 11) 9 $ 14 126 Purchase (Jan. 20) 20 $ 16 320 Total 46 $ 582
On January 14, Beech Soda, Inc. sold 22 units of this product.The other 24 units remained in inventory at January 31.
Assuming that Beech Soda uses the average cost flow assumption,the cost of goods sold to be recorded at January 14 is (round yourintermediate calculation to one decimal place and final answer tothe nearest cent):
Assuming that Beech Soda uses the FIFO cost flow assumption, the24 units of this product in inventory at January 31 have a totalcost of:
Assuming that Beech Soda uses the LIFO cost flow assumption, the24 units of this product in inventory at January 31 have a totalcost of:
Beech Soda, Inc. uses a perpetual inventory system. Thecompany's beginning inventory of a particular product and itspurchases during the month of January were as follows:
| Quantity | Unit Cost | TotalCost | |
| Beginning inventory (Jan. 1) | 17 | $ 8 | $ 136 |
| Purchase (Jan. 11) | 9 | $ 14 | 126 |
| Purchase (Jan. 20) | 20 | $ 16 | 320 |
| Total | 46 | $ 582 | |
On January 14, Beech Soda, Inc. sold 22 units of this product.The other 24 units remained in inventory at January 31.
Assuming that Beech Soda uses the average cost flow assumption,the cost of goods sold to be recorded at January 14 is (round yourintermediate calculation to one decimal place and final answer tothe nearest cent):
Assuming that Beech Soda uses the FIFO cost flow assumption, the24 units of this product in inventory at January 31 have a totalcost of:
Assuming that Beech Soda uses the LIFO cost flow assumption, the24 units of this product in inventory at January 31 have a totalcost of:
Related questions
Chippewas Company sells one product. Presented below isinformation for January for Chippewas Company.
| Jan. 1 | Inventory | 102 | units at $5 each | ||
| 4 | Sale | 78 | units at $8 each | ||
| 11 | Purchase | 143 | units at $7 each | ||
| 13 | Sale | 110 | units at $9 each | ||
| 20 | Purchase | 168 | units at $6 each | ||
| 27 | Sale | 107 | units at $10 each |
Chippewas uses the FIFO cost flow assumption. All purchasesand sales are on account.
A. Assume Chippewas uses a periodic system. Prepareall necessary journal entries, including the end-of-month closingentry to record cost of goods sold. A physical count indicates thatthe ending inventory for January is 118 units.
Journal Entries:
Jan 4th: ________
_________
Jan 11th:________
_________
Jan. 13th: ________
_________
Jan. 20th:_________
__________
Jan. 27th:__________
Jan 31st: _________
__________
__________
___________
Use the following information for the Exercisesbelow.
[The following information applies to the questionsdisplayed below.]
Laker Company reported the following January purchases and salesdata 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 | |||||||||||
The Company uses a perpetual inventory system. For specificidentification, ending inventory consists of 200 units, where 180are from the January 30 purchase, 5 are from the January 20purchase, and 15 are from beginning inventory.
Exercise 6-3 Perpetual: Inventory costing methods LO P1
Required:
1. Complete the table to determine the costassigned to ending inventory and cost of goods sold using specificidentification.
2. Determine the cost assigned to ending inventoryand to cost of goods sold using weighted average.
3. Determine the cost assigned to ending inventoryand to cost of goods sold using FIFO.
4. Determine the cost assigned to ending inventoryand to cost of goods sold using LIFO.
Required 3
Required 4
Complete the table to determine the cost assigned to endinginventory and cost of goods sold using specific identification.
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Determine the cost assigned to ending inventory and to cost ofgoods sold using weighted average. (Round cost per unit to 2decimal places.)
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Determine the cost assigned to ending inventory and to cost ofgoods sold using FIFO.
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Determine the cost assigned to ending inventory and to cost ofgoods sold using LIFO.
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | 180 units @ $10.50 = $1,890 | |
| Jan. 10 | Sales | 120 units @ $19.50 | |
| Jan. 20 | Purchase | 110 units @ $9.50 = 1,045 | |
| Jan- 25 | Sales | 150 units @ $19.50 | |
| Jan 30 | Purchase | 260 units @ $9.00 = 2,340 | |
| Totals | 550 units - $5,275 | 270 units |
The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 280 units, where 260 are from the January 30 purchase. 5 are from the January 20 purchase, inventory al inventory system.
Required
1. Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are S1.650, and that the applicable income tax rate is 40%. (Round your intermediate calculations to 2 decimal places.)
2. Which method yields the highest net income?
_____ Specific identification
_____ LIFO
_____ Weighted average
_____ FIFO
3. Does net income use a weighted average fall between that using FIFO and LIFO?
