Resource: Fundamental Accounting Principles, pp. 247-249
Exercise 6-1
Inventory costing methods—perpetual
P1
Jan. 1 Beginning inventory 120 units @ $6 = $ 720
Jan. 10 Sales 70 units @ $15
Mar. 7 Purchase 200 units @ $5.50 = 1,100
Mar. 15 Sales 125 units @ $15
July 28 Purchase 500 units @ $5.00 = 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 July 28 purchase and 100 from December 19 purchase. Determine the cost assigned to ending inventory and to costs of goods sold using (a) specific identification, (b)weighed average, (c) FIFO, and (d) LIFO. SOLUTION
