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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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