ACC 225 E 6-1 Lakia Corporation reported the following current-year purchases and sales data for its only

ACC 225 E 6-1 Lakia Corporation reported the following current-year purchases and sales data for its only

ACC 225Computing Inventory Balances and Lower Costs or Market

Resource: Fundamental Accounting Principles, pp. 247-249

Exercise 6-1

Inventory costing methods—perpetual

P1

E 6-1 Lakia Corporation reported the following current-year purchases and sales data for its only product:

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