Laker Company reported the following January purchases and sales data for its only product. Activities Units Acquired at Cost 190 units @ $7.00 = $1,330 Date Units sold at Retail Jan. 1 Beginning inventory Jan. 10 Sales 150 units @ $16.00 Jan. 20 Purchase 110 units @ $6.00 = 660 Jan. 25 Sales 130 units @ $16.00 Jan. 30 Purchase 280 units @ $5.50 = 1,540 Totals 580 units $3,530 280 units Required: 1. Compute gross profit for the month of January for Laker Company for the four inventory methods. 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? Complete this question by entering your answers in the tabs below. Req 1 Req 2 to 4 Compute gross profit for the month of January for Laker Company for the four inventory methods. (Round cost per unit to 2 decimal places and final answers to the nearest whole dollars.) LAKER COMPANY For Month Ended January 31 Specific Weighted Identification Average FIFO LIFO Sales Cost of goods sold Gross profit $ $ 2$ $

Laker Company reported the following January purchases and sales data for its only product. Activities Units Acquired at Cost 190 units @ $7.00 = $1,330 Date Units sold at Retail Jan. 1 Beginning inventory Jan. 10 Sales 150 units @ $16.00 Jan. 20 Purchase 110 units @ $6.00 = 660 Jan. 25 Sales 130 units @ $16.00 Jan. 30 Purchase 280 units @ $5.50 = 1,540 Totals 580 units $3,530 280 units Required: 1. Compute gross profit for the month of January for Laker Company for the four inventory methods. 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? Complete this question by entering your answers in the tabs below. Req 1 Req 2 to 4 Compute gross profit for the month of January for Laker Company for the four inventory methods. (Round cost per unit to 2 decimal places and final answers to the nearest whole dollars.) LAKER COMPANY For Month Ended January 31 Specific Weighted Identification Average FIFO LIFO Sales Cost of goods sold Gross profit $ $ 2$ $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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