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Chapter 5Walberg Associates, antique dealers, purchased the contents of an estate for $38,700. Terms of the purchase were FOB shipping point, and the cost of transporting the goods to Walberg Associates' warehouse was $1,800. Walberg Associates insured the shipment at a cost of $270. Prior to putting the goods up for sale, they cleaned and refurbished them at a cost of $610.Determine the cost of the inventory acquired from the estate.Cost of inventory (estate's contents)Price$38,700Transportation-in1,800Insurance on shipment270Cleaning and refurbishing610Total cost of inventory$41,380[The following information applies to the questions displayed below.]Laker Company reported the following January purchases and sales data for its only product.DateActivitiesUnits Acquired at CostUnits sold at RetailJan.1Beginninginventory350units @$11.00=$3,850Jan.10Sales190units@$19.00Jan.20Purchase420units @$10.00=4,200Jan.25Sales345units@$19.00Jan.30Purchase290units @$9.00=2,610Totals1,060 units$10,660535unitsRequired: The company uses a perpetual inventory system. For specific identification, ending inventory consists of 525 units, where 290 are from the January 30 purchase, 80 are from the January 20 purchase, and 155 are from beginning inventory.1. Complete the table to determine the cost assigned to ending inventory and cost of goods sold using specific identification. (Round cost per unit to 2 decimal places.)Specific IdentificationAvailable for SaleCost of Goods SoldEnding InventoryPurchase DateActivityUnits Unit CostUnits SoldUnit CostCOGSEnding Inventory- UnitsCost Per UnitEnding Inventory- CostJan. 1Beginninginventory350$11.00195$11.00$2,145155$11.00$1,705Jan. 20Purchase420$10.00340$10.00$3,40080$10.00$800Jan. 30Purchase290$9.00290$9.00$2,6101,060535$5,545525$5,1151