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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 340 units from the January 30 purchase, 5 units from the January 20 purchase, and 15 units from beginning inventory. Date Activities January 10 January 1 Beginning inventory Sales Purchase Sales Purchase Totals January 20 January 25 January 30. Units Acquired at Cost 210 units @ $13.50 = 150 units @ $12.50 = $12.00- Complete this question by entering your answers in the tabs below. Sales Cost of goods sold Gross profit 340 units @ 700 units $ Required: 1. Compute gross profit for the month of January for Laker Company for the four inventory methods using the periodic inventory system. 2. Which method yields the highest gross profit? 3. Does gross profit using weighted average fall between that using FIFO and LIFO? 4. If costs were rising instead of falling, which method would yield the highest gross profit? LAKER COMPANY For Month Ended January 31 Specific Identification Weighted Average 0 $ Req 1 Req 2 to 4 Compute gross profit for the month of January for Laker Company for the four inventory methods using the periodic inventory system. (Round cost per unit to 2 decimal places and final answers to the nearest whole dollars.) 0 $ $ 2,835 1,875 4,080 $ 8,790 FIFO Req 2 to 4 > Units sold at Retail 160 units @ 180 units @ 0 $ 340 units LIFO $ 22.50 $ 22.50 0

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 340 units from the January 30 purchase, 5 units from the January 20 purchase, and 15 units from beginning inventory. Date Activities January 10 January 1 Beginning inventory Sales Purchase Sales Purchase Totals January 20 January 25 January 30. Units Acquired at Cost 210 units @ $13.50 = 150 units @ $12.50 = $12.00- Complete this question by entering your answers in the tabs below. Sales Cost of goods sold Gross profit 340 units @ 700 units $ Required: 1. Compute gross profit for the month of January for Laker Company for the four inventory methods using the periodic inventory system. 2. Which method yields the highest gross profit? 3. Does gross profit using weighted average fall between that using FIFO and LIFO? 4. If costs were rising instead of falling, which method would yield the highest gross profit? LAKER COMPANY For Month Ended January 31 Specific Identification Weighted Average 0 $ Req 1 Req 2 to 4 Compute gross profit for the month of January for Laker Company for the four inventory methods using the periodic inventory system. (Round cost per unit to 2 decimal places and final answers to the nearest whole dollars.) 0 $ $ 2,835 1,875 4,080 $ 8,790 FIFO Req 2 to 4 > Units sold at Retail 160 units @ 180 units @ 0 $ 340 units LIFO $ 22.50 $ 22.50 0

Financial Accounting
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter7: Inventories
Section: Chapter Questions
Problem 4PB: The beginning inventory for Dunne Co. and data on purchases and sales for a three-month period are...
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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 340 units from the January 30 purchase, 5 units from the January 20 purchase, and 15 units from beginning inventory. Date January 11 January 10 January 201 January 25 January 30 Activities Beginning inventory Sales Purchase Sales Purchase Totals. Sales Cost of goods sold Gross profit Units Acquired at Cost 210 units @ $13.50 = 150 units @ $12.50 = $12.00 = Complete this question by entering your answers in the tabs below. 340 units @ 700 units $ LAKER COMPANY For Month Ended January 31 Specific Identification Weighted Average 0 $ Required: 1. Compute gross profit for the month of January for Laker Company for the four inventory methods using the periodic inventory system. 2. Which method yields the highest gross profit? 3. Does gross profit using weighted average fall between that using FIFO and LIFO? 4. If costs were rising instead of falling, which method would yield the highest gross profit? 0 $ $ 2,835 Req 1 Req 2 to 4 Compute gross profit for the month of January for Laker Company for the four inventory methods using the periodic inventory system. (Round cost per unit to 2 decimal places and final answers to the nearest whole dollars.) FIFO Req 2 to 4 > Units sold at Retail 1,875 4,080 $ 8,790 340 units 160 units 180 units 0 $ LIFO @ @ $ 22.50 $ 22.50
Transcribed Image Text: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 340 units from the January 30 purchase, 5 units from the January 20 purchase, and 15 units from beginning inventory. Date January 11 January 10 January 201 January 25 January 30 Activities Beginning inventory Sales Purchase Sales Purchase Totals. Sales Cost of goods sold Gross profit Units Acquired at Cost 210 units @ $13.50 = 150 units @ $12.50 = $12.00 = Complete this question by entering your answers in the tabs below. 340 units @ 700 units $ LAKER COMPANY For Month Ended January 31 Specific Identification Weighted Average 0 $ Required: 1. Compute gross profit for the month of January for Laker Company for the four inventory methods using the periodic inventory system. 2. Which method yields the highest gross profit? 3. Does gross profit using weighted average fall between that using FIFO and LIFO? 4. If costs were rising instead of falling, which method would yield the highest gross profit? 0 $ $ 2,835 Req 1 Req 2 to 4 Compute gross profit for the month of January for Laker Company for the four inventory methods using the periodic inventory system. (Round cost per unit to 2 decimal places and final answers to the nearest whole dollars.) FIFO Req 2 to 4 > Units sold at Retail 1,875 4,080 $ 8,790 340 units 160 units 180 units 0 $ LIFO @ @ $ 22.50 $ 22.50
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