Required information [The following information applies to the questions displayed below] Laker Company reported the following January purchases and sales data for its only product. For specific identification, ending inventory consists of 260 units from the January 30 purchase, 5 units from the January 20 purchase, and 25 units from beginning inventory. Date January 1 January 10 January 20 January 25 January 30 Beginning inventory Sales Purchase Sales Purchase Totals Assume the perpetual inventory system is used. Required: Activities Req 1 1. Compute gross profit for the month of January 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? Reg 2 to 4 Complete this question by entering your answers in the tabs below. Sales Cost of goods sold Gross profit 403361 $ Units Acquired at Cost 170 units @ $9.50 120 units e 260 units@ 550 units $8.50 = $8.00 = LAKER COMPANY For Month Ended January 31 Weighted Average Specific Identification Compute gross profit for the month of January for Laker Company for the four inventory methods. Note: Round cost per unit to 2 decimal places and final answers to the nearest whole dollars. Reg 1 FIFO Company for the four inventory methods. $ 1,615 1,020 2,080 $ 4,715 LIFO 0 $0 $0 $0 Req 2 to 4 > Units sold at Retail 130 units @ 130 units 260 units 8 $18.50 $18.50
Required information [The following information applies to the questions displayed below] Laker Company reported the following January purchases and sales data for its only product. For specific identification, ending inventory consists of 260 units from the January 30 purchase, 5 units from the January 20 purchase, and 25 units from beginning inventory. Date January 1 January 10 January 20 January 25 January 30 Beginning inventory Sales Purchase Sales Purchase Totals Assume the perpetual inventory system is used. Required: Activities Req 1 1. Compute gross profit for the month of January 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? Reg 2 to 4 Complete this question by entering your answers in the tabs below. Sales Cost of goods sold Gross profit 403361 $ Units Acquired at Cost 170 units @ $9.50 120 units e 260 units@ 550 units $8.50 = $8.00 = LAKER COMPANY For Month Ended January 31 Weighted Average Specific Identification Compute gross profit for the month of January for Laker Company for the four inventory methods. Note: Round cost per unit to 2 decimal places and final answers to the nearest whole dollars. Reg 1 FIFO Company for the four inventory methods. $ 1,615 1,020 2,080 $ 4,715 LIFO 0 $0 $0 $0 Req 2 to 4 > Units sold at Retail 130 units @ 130 units 260 units 8 $18.50 $18.50
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Required Information
[The following information applies to the questions displayed below.
Laker Company reported the following January purchases and sales data for its only product. For specific identification,
ending inventory consists of 260 units from the January 30 purchase, 5 units from the January 20 purchase, and 25 units
from beginning inventory.
Date
January 1
January 10
January 20
January 25
January 30
Assume the perpetual inventory system is used.
Required:
Beginning inventory
Sales
Purchase
Sales
Purchase
Totals
Req 1
Activities
Req 2 to 4
Sales
Cost of goods sold
Gross profit
Complete this question by entering your answers in the tabs below.
Units Acquired at Cost
170 units @ $9.50 =
120 units
$ 8.50 =
$
260 units
550 units
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?
LAKER COMPANY
For Month Ended January 31
Weighted
Average
Specific
Identification
Compute gross profit for the month of January for Laker Company for the four inventory methods.
Note: Round cost per unit to 2 decimal places and final answers to the nearest whole dollars.
12 $ 8.09 =
P
0 $0 $
FIFO
PLO $
LIFO
$ 1,615
1,020
2,080
$ 4,715
0
Req 2 to 4 >
Units sold at Retail
130 units
130 units
260 units
G
$18.50
$18.50
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