Application of lifo fifo and weighted average method of

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Reference no: EM13356612

Application of LIFO, FIFO and Weighted Average method of Inventory System.

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

Date

Activities

Units Aquired at Cost

Units sold at retail

Jan. 1

Beginning Inventory

120 units @ $6=$720

 

Jan. 10

Sales

 

70 units @ $15

Mar. 7

Purchases

200 units @$5.50=1,100

 

Mar. 15

Sales

 

125 units @ $15

July 28

Purchase

500 units@ $5=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 the July 28 purchase and 100 from the December 19 purchase. Determine the cost assigned to ending inventory and to cost of goods sold using

a) specific identification, 
b) weighted average,
c) FIFO and d) LIFO

Reference no: EM13356612

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