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. The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 180 units from the January 30 purchase, 5 units from the January 20 purchase, and 15 units from beginning inventory. Date January 1 January 10 January 201 January 25 January 30 Activities Beginning inventory Sales Purchase Sales Purchase Totals Units Acquired at Cost @ $6.00- 140 units 60 units 180 units 380 units @$5.00- @$4.50- $ 840 300 810 $1,950 Units sold at Retail 100 units @$15 80 units @$15 180 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?
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. The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 180 units from the January 30 purchase, 5 units from the January 20 purchase, and 15 units from beginning inventory. Date January 1 January 10 January 201 January 25 January 30 Activities Beginning inventory Sales Purchase Sales Purchase Totals Units Acquired at Cost @ $6.00- 140 units 60 units 180 units 380 units @$5.00- @$4.50- $ 840 300 810 $1,950 Units sold at Retail 100 units @$15 80 units @$15 180 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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Qw.113.a
![es
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. The Company uses a
perpetual inventory system. For specific identification, ending inventory consists of 180 units from the January 30
purchase, 5 units from the January 20 purchase, and 15 units from beginning inventory.
Date
January 1
January 10
January 201
January 25
January 30
Activities
Beginning inventory
Sales
Purchase.
Sales
Purchase
Totals
Units Acquired at Cost.
@ $6.00-
@ $ 5.00 =
@ $ 4.50
140 units
60 units
Reg 2 to 4
180 units
380 units
Complete this question by entering your answers in the tabs below.
$ 840
300
810
$1,950
Units sold at Retail
@$ 15
@$ 15
100 units
80 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?
180 units
Req 1
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.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff45f1cd3-5ba1-46ed-898f-d6d425cb9227%2F93c67f4a-f748-4816-9b53-7dfd0678d629%2Fstt4zek_processed.jpeg&w=3840&q=75)
Transcribed Image Text:es
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. The Company uses a
perpetual inventory system. For specific identification, ending inventory consists of 180 units from the January 30
purchase, 5 units from the January 20 purchase, and 15 units from beginning inventory.
Date
January 1
January 10
January 201
January 25
January 30
Activities
Beginning inventory
Sales
Purchase.
Sales
Purchase
Totals
Units Acquired at Cost.
@ $6.00-
@ $ 5.00 =
@ $ 4.50
140 units
60 units
Reg 2 to 4
180 units
380 units
Complete this question by entering your answers in the tabs below.
$ 840
300
810
$1,950
Units sold at Retail
@$ 15
@$ 15
100 units
80 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?
180 units
Req 1
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.)
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