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 300 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 Activities Beginning inventory Sales Purchase Sales Purchase Totals Assume the periodic Inventory system is used. Required: Units Acquired at Cost 200 units @ $ 12.50 = 130 units @ $ 11.50 = 300 units @ $ 11.00 = 630 units $ 2,500 1,495 3,300 $ 7,295 Units sold at Retail @ 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? 160 units 140 units 300 units $ 21.50 $ 21.50 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?
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 300 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 Activities Beginning inventory Sales Purchase Sales Purchase Totals Assume the periodic Inventory system is used. Required: Units Acquired at Cost 200 units @ $ 12.50 = 130 units @ $ 11.50 = 300 units @ $ 11.00 = 630 units $ 2,500 1,495 3,300 $ 7,295 Units sold at Retail @ 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? 160 units 140 units 300 units $ 21.50 $ 21.50 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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Topic Video
Question
4
![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 300 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 periodic Inventory system is used.
Required:
Activities
Beginning inventory
Sales
Purchase
Sales
Purchase
Totals
Req 1
Sales
Cost of goods sold
Gross profit
Req 2 to 4
Complete this question by entering your answers in the tabs below.
S
Units Acquired at Cost
200 units @ $ 12.50 =
130 units @ $ 11.50 =
$
300 units @
630 units
Specific
Identification
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?
Answer is complete but not entirely correct.
LAKER COMPANY
For Month Ended January 31
Weighted
Average
6,450 IS
3,626
2,824 S
$ 11.00 =
6,450 IS
3,474
2,976
Compute gross profit for the month of January for Laker Company for the four inventory methods using the periodic inventory
system.
Note: Round cost per unit to 2 decimal places and final answers to the nearest whole dollars.
S
$ 2,500
1,495
3,300
$ 7,295
FIFO
6,450
3,650
2,800
S
$
Units sold at Retail
@
@
160 units
LIFO
140 units
300 units
$21.50
6,450
3,645
2,805
$ 21.50](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fedaf4f9b-541c-441e-af8c-deaf3b4f51aa%2Fca88f1a6-5c12-4aff-b90f-ad2d6f9168f4%2Ftbl2n1_processed.png&w=3840&q=75)
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 300 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 periodic Inventory system is used.
Required:
Activities
Beginning inventory
Sales
Purchase
Sales
Purchase
Totals
Req 1
Sales
Cost of goods sold
Gross profit
Req 2 to 4
Complete this question by entering your answers in the tabs below.
S
Units Acquired at Cost
200 units @ $ 12.50 =
130 units @ $ 11.50 =
$
300 units @
630 units
Specific
Identification
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?
Answer is complete but not entirely correct.
LAKER COMPANY
For Month Ended January 31
Weighted
Average
6,450 IS
3,626
2,824 S
$ 11.00 =
6,450 IS
3,474
2,976
Compute gross profit for the month of January for Laker Company for the four inventory methods using the periodic inventory
system.
Note: Round cost per unit to 2 decimal places and final answers to the nearest whole dollars.
S
$ 2,500
1,495
3,300
$ 7,295
FIFO
6,450
3,650
2,800
S
$
Units sold at Retail
@
@
160 units
LIFO
140 units
300 units
$21.50
6,450
3,645
2,805
$ 21.50
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education