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Laker Company reported the following January purchases and sales data for its only product. For specific identification, ending inventory consists of 220 units, where 180 are from the January 30 purchase, 5 are from the January 20 purcha and 35 are from beginning inventory. Date Activities January 1 Beginning inventory January 10 Sales. January 20 Purchase January 25 Sales January 30 Purchase Totals me the periodic inventory system is used. ired: Units Acquired at Cost 150 units @ $6.00 = 70 units @ $5.00 = 180 units 400 units. @ $4.50 = $ 900 350 mplete this question by entering your answers in the tabs below 810 $ 2,060 Does gross profit using weighted average fall between that using FIFO and LIFO? If costs were rising instead of falling, which method would yield the highest gross profit? Units sold at Retail. 90 units @ 90 units @ Compute gross profit for the month of January for Laker Company for the four inventory methods. Which method yields the highest gross profit? 180 units $15.00 $15.00

Laker Company reported the following January purchases and sales data for its only product. For specific identification, ending inventory consists of 220 units, where 180 are from the January 30 purchase, 5 are from the January 20 purcha and 35 are from beginning inventory. Date Activities January 1 Beginning inventory January 10 Sales. January 20 Purchase January 25 Sales January 30 Purchase Totals me the periodic inventory system is used. ired: Units Acquired at Cost 150 units @ $6.00 = 70 units @ $5.00 = 180 units 400 units. @ $4.50 = $ 900 350 mplete this question by entering your answers in the tabs below 810 $ 2,060 Does gross profit using weighted average fall between that using FIFO and LIFO? If costs were rising instead of falling, which method would yield the highest gross profit? Units sold at Retail. 90 units @ 90 units @ Compute gross profit for the month of January for Laker Company for the four inventory methods. Which method yields the highest gross profit? 180 units $15.00 $15.00

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Laker Company reported the following January purchases and sales data for its only product. For specific identification, ending inventory consists of 220 units, where 180 are from the January 30 purchase, 5 are from the January 20 purchase, and 35 are from beginning inventory. Date Activities January 1 Beginning inventory January 10 Sales January 20 Purchase January 25 Sales January 30 Purchase Totals Assume the periodic inventory system is used. Required: Req 1 Units Acquired at Cost $ 6.00 $ 5.00 150 units @ Req 2 to 4 70 units 180 units 400 units @ Req 1 $ 4.50 Complete this question by entering your answers in the tabs below. 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? = 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? $ 900 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? 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? Req 2 to 4 350 810 $ 2,060 Units sold at Retail 90 units @ 90 units @ 180 units $15.00 $ 15.00
Transcribed Image Text:Laker Company reported the following January purchases and sales data for its only product. For specific identification, ending inventory consists of 220 units, where 180 are from the January 30 purchase, 5 are from the January 20 purchase, and 35 are from beginning inventory. Date Activities January 1 Beginning inventory January 10 Sales January 20 Purchase January 25 Sales January 30 Purchase Totals Assume the periodic inventory system is used. Required: Req 1 Units Acquired at Cost $ 6.00 $ 5.00 150 units @ Req 2 to 4 70 units 180 units 400 units @ Req 1 $ 4.50 Complete this question by entering your answers in the tabs below. 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? = 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? $ 900 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? 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? Req 2 to 4 350 810 $ 2,060 Units sold at Retail 90 units @ 90 units @ 180 units $15.00 $ 15.00
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