accounting 1

Assignment Details

Laker Company reported the following January purchases and sales data for its only product. The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 200 units, where 180 are from the January 30 purchase, 5 are from the January 20 purchase, and 15 are from beginning inventory.

Required steps for this assignment:

1. Review the Unit 4 IP Model Problem before beginning this assignment
2. Use this ACCT201_U4_IP_template to complete your assignment.
3. Complete the Specific Identification tab to determine the cost assigned to ending inventory and cost of goods sold using specific identification tab.
4. Determine the cost assigned to ending inventory and to cost of goods sold using FIFO (First In First Out) tab.
5. Determine the cost assigned to ending inventory and to cost of goods sold using LIFO (Last In Last Out) tab.

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Unit

4

IP Model Problem

1

LLK Company reported the following January purchases and sales data for its only product.

Date
Jan. 1 Beginning inventory $1,400

Jan. 10 Sales 160 units @ $18.00 = $2,880
Jan. 20 Purchase 1,020
Jan. 2

5

Sales 100 units @ $18.00 = $1,800
Jan.

3

0 Purchase 944

510 units $3,364 260 units $4,680

150 units @ $6.80 =

160 units @ $5.90 =

LLK uses a perpetual inventory system. Determine the cost assigned to cost of goods sold using specific
identification, weighted average, FIFO, and LIFO.

Units Acquired at Cost Units sold at RetailActivities
200 units @ $7.00 =

2

Reminder: Cost of Goods Sold is found by the following formula:
Beginning Inventory + Purchases = Cost of Goods Available for Sale – Ending
Inventory = Cost of Goods Sold

Date Activity Units

Unit
Cost

Units
Sold

Unit
Cost

COGS

Ending
Inventory

Units

Cost per
Unit

Ending
Inventory

Cost
Jan. 1 Beg. Inv. 200 $7.00 180 $7.00 $1,260 20 $7.00 $140
Jan. 20 Purchase 150 $6.80 80 $6.80 544 70 $6.80 476
Jan. 30 Purchase 160 $5.90 0 $5.90 0 160 $5.90 944

$1,804 $1,560

Beginning inventory $1,400
Purchases 1,964
Cost of goods available for sale 3,364
Ending inventory (1,560)
Cost of goods sold $1,804

For specific identification, ending inventory consists of 250 units, where 160 are from the January 30 purchase, 70
are from the January 20 purchase, and 20 are from beginning inventory.

1. Determine the cost assigned to ending inventory and to cost of goods sold using specific identification.

Ending InventoryCost of Goods SoldAvailable for Sale

Total 260 250

Date
Jan. 1 Beginning inventory $1,400

Jan. 10 Sales 160 units @ $18.00 = $2,880
Jan. 20 Purchase 1,020
Jan. 25 Sales 100 units @ $18.00 = $1,800
Jan. 30 Purchase 944

510 units $3,364 260 units $4,680
150 units @ $6.80 =
160 units @ $5.90 =
Units Acquired at Cost Units sold at RetailActivities
200 units @ $7.00 =
3

2. Determine the cost assigned to ending inventory and to cost of goods sold using perpetual FIFO.

Date
Jan. 1 Beginning inventory $1,400
Jan. 10 Sales 160 units @ $18.00 = $2,880
Jan. 20 Purchase 1,020
Jan. 25 Sales 100 units @ $18.00 = $1,800
Jan. 30 Purchase 944
510 units $3,364 260 units $4,680
150 units @ $6.80 =
160 units @ $5.90 =
Units Acquired at Cost Units sold at RetailActivities
200 units @ $7.00 =

Date Units Unit
Cost

Units
Sold
Unit
Cost

COGS # of units Unit
Cost

Inventory
Balance

Jan. 1 200 $7.00 200 $7.00 $1,400.00
Jan. 10 160 $7.00 $1,120.00 40 $7.00 280.00
Jan. 20 150 $6.80 40 $7.00 280.00

150 $6.80 1,020.00
190 1,300.00

Jan. 25 40 $7.00 280.00 0 $7.00 0.00
60 $6.80 408.00 90 $6.80 612.00

688.00 90 612.00
Jan. 30 160 $5.90 0 $7.00 0.00

90 $6.80 612.00
160 $5.90 944.00

Total $1,808.00 250 $1,556.00

Beginning Inventory $1,400.00
Purchases 1,964.00
Cost of goods available for sale 3,364.00
Ending inventory (1,556.00)
Cost of goods sold $1,808.00

Goods purchased Cost of Goods Sold Ending Inventory

4

3. Determine the cost assigned to ending inventory and to cost of goods sold using perpetual LIFO.

Date
Jan. 1 Beginning inventory $1,400
Jan. 10 Sales 160 units @ $18.00 = $2,880
Jan. 20 Purchase 1,020
Jan. 25 Sales 100 units @ $18.00 = $1,800
Jan. 30 Purchase 944
510 units $3,364 260 units $4,680
150 units @ $6.80 =
160 units @ $5.90 =
Units Acquired at Cost Units sold at RetailActivities
200 units @ $7.00 =
Date Units Unit
Cost
Units
Sold
Unit
Cost
COGS # of units Unit
Cost
Inventory
Balance
Jan. 1 200 $7.00 200 $7.00 $1,400.00
Jan. 10 160 $7.00 $1,120.00 40 $7.00 280.00
Jan. 20 150 $6.80 40 $7.00 280.00
150 $6.80 1,020.00
190 1,300.00

Jan. 25 40 $7.00 280.00
100 $6.80 680.00 50 $6.80 340.00

90 620.00
Jan. 30 160 $5.90 40 $7.00 280.00

50 $6.80 340.00
160 $5.90 944.00

Total $1,800.00 250 $1,564.00

Beginning Inventory $1,400.00
Purchases 1,964.00
Cost of goods available for sale 3,364.00
Ending inventory (1,564.00)
Cost of goods sold $1,800.00

Goods purchased Cost of Goods Sold Ending Inventory
5

• Unit 4 IP Model Problem
• Slide Number 2
• Slide Number 3
• Slide Number 4
• Slide Number 5

Data

the following information for the Exercises below.

$

Jan.

 units @ $

Jan.

 units @ $ 5 =

0

Jan.

Sales

 units @ $

Jan. 30 Purchase

 units @ $

=

 units $

180  units

purchase, and 15 are from beginning inventory.

																																																																																																																																																																																																																																																																																																																																																																																																														Use
[The following information applies to the questions displayed below.]
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		1		4							0							units																																									@							$	6																		=	8				40
10		Sales				100	1	5
20		Purchase	60		30
25	80	15
				180	4.5	810
			Totals	380	1,950
The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 200 units, where 180 are from the January 30 purchase, 5 are from the			January 20

Specific ID

Date

Cost per unit Cost of Goods Sold # of units Cost per unit Inventory Balance

@

100 @

40 @ $0.00 $0.00

January 20

40 @

=

0 @

$0.00

$240.00

@ $ 6.00 = $ – 0 @ $ 6.00 = $ – 0

@ $ 5.00 = $ – 0 @ $ 5.00 = $ – 0
$ – 0

180 @ 0 @ $ 6.00 $ – 0

0 @ $ 5.00 $ – 0
$0.00 $ – 0
Totals

0 $ – 0

Specific Identification

Goods Purchased

Cost of Goods Sold

Inventory Balance

# of units

Cost per unit

# of units sold

1-Jan

140

$0.00

January 10

$ – 0

$5.00

$ 6.00

$240.00

$ 5.00

25-Jan

30-Jan

ERROR:#VALUE!

FIFO

Goods Purchased Cost of Goods Sold Inventory Balance
Date # of units Cost per unit # of units sold Cost per unit Cost of Goods Sold # of units Cost per unit Inventory Balance
1-Jan 140 @ $0.00

January 10 100 @ $ – 0 40 @ $0.00 $0.00

January 20 $5.00 40 @ $ 6.00 = $240.00
0 @ $ 5.00 $0.00
$240.00

25-Jan @ $ 6.00 = $ – 0 @ $ 6.00 = $ – 0
@ $ 5.00 = $ – 0 @ $ 5.00 = $ – 0
$ – 0

30-Jan 180 @ @ $ 6.00 $ – 0

0 @ $ 5.00 $ – 0
$0.00 $ – 0

Totals ERROR:#VALUE! $ – 0

Perpetual FIFO:

LIFO

Goods Purchased Cost of Goods Sold Inventory Balance
Date # of units Cost per unit # of units sold Cost per unit Cost of Goods Sold # of units Cost per unit Inventory Balance
1-Jan 140 @ $0.00

January 10 100 @ $0.00 $ – 0 40 @ $0.00 $0.00

January 20 $5.00 40 @ $ 6.00 = $240.00
0 @ $ 5.00 $0.00

$240.00
1

25-Jan @ $ 6.00 = $ – 0 @ $ 6.00 = $ – 0
@ $ 5.00 = $ – 0 @ $ 5.00 = $ – 0
$ – 0

30-Jan 180 @ @ $ 6.00 $ – 0

@ $ 5.00 $ – 0

$0.00 $ – 0
Totals ERROR:#VALUE! $ – 0

Perpetual LIFO: