Perpetual: Inventory costing with FIFO
A company reports the following beginning inventory and twopurchases for the month of January. On January 26, the companysells 360 units. Ending inventory at January 31 totals 130units.
Units
Unit Cost
Beginning inventory on January 1
320
$
3.10
Purchase on January 9
70
3.30
Purchase on January 25
100
3.40
Required:
Assume the perpetual inventory system is used and then determinethe costs assigned to ending inventory when costs are assignedbased on the FIFO method.
A company reports the following beginning inventory and twopurchases for the month of January. On January 26, the companysells 320 units. Ending inventory at January 31 totals 140units.
Units
Unit Cost
Beginning inventory on January 1
290
$
2.70
Purchase on January 9
70
2.90
Purchase on January 25
100
3.04
Required:
Assume the perpetual inventory system is used. Determine the costsassigned to ending inventory when costs are assigned based onLIFO.
Perpetual: Inventory costing with FIFO
A company reports the following beginning inventory and twopurchases for the month of January. On January 26, the companysells 360 units. Ending inventory at January 31 totals 130units.
Units | Unit Cost | |||
Beginning inventory on January 1 | 320 | $ | 3.10 | |
Purchase on January 9 | 70 | 3.30 | ||
Purchase on January 25 | 100 | 3.40 | ||
Required:
Assume the perpetual inventory system is used and then determinethe costs assigned to ending inventory when costs are assignedbased on the FIFO method.
A company reports the following beginning inventory and twopurchases for the month of January. On January 26, the companysells 320 units. Ending inventory at January 31 totals 140units.
Units | Unit Cost | |||
Beginning inventory on January 1 | 290 | $ | 2.70 | |
Purchase on January 9 | 70 | 2.90 | ||
Purchase on January 25 | 100 | 3.04 | ||
Required:
Assume the perpetual inventory system is used. Determine the costsassigned to ending inventory when costs are assigned based onLIFO.
Related questions
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.
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Determine the cost assigned to ending inventory and to cost ofgoods sold using weighted average. (Round cost per unit to 2decimal places.)
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Determine the cost assigned to ending inventory and to cost ofgoods sold using FIFO.
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Determine the cost assigned to ending inventory and to cost ofgoods sold using LIFO.
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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:
