Exercise 6-5 (Algo) Perpetual: Gross profit effects of inventory methods LO A11. 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?Complete this question by entering your answers in the tabs below.Req 1Req 2 to 4Compute 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.SalesCost of goods soldGross profitLAKER COMPANYFor Month Ended January 31SpecificWeightedIdentificationAverage$9,240 $5,6003,640 $9,240 $5,6113,629 $FIFO9,240 $5,6153,625 $LIFO9,2409,240Check !Required informationUse the following information for the Exercises 3-7 below. (Algo)[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 aperpetual inventory system. For specific identification, ending inventory consists of 385 units from the January 30purchase, 5 units from the January 20 purchase, and 15 units from beginning inventory.DateJanuary 1January 10January 20January 25January 30ActivitiesBeginning inventorySalesPurchaseSalesPurchaseTotalsUnits Acquired at Cost225 units @ $ 15.00 =180 units @385 units @790 units$ 14.00 =$ 12.00 =$ 3,3752,5204,620$ 10,515Units sold at Retail175 units210 units385 units@@$ 24.00$ 24.00

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Description: Exercise 6-5 (Algo) Perpetual: Gross profit effects of inventory methods LO A11. 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 usin

Inventory valuation refers to the process of assigning a monetary value to the inventory of a…

Business

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Required information Use the following information for the Exercises 3-7 below. (Algo) [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 385 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 20 January 25 January 30 Activities Beginning inventory Sales Purchase. Sales Purchase Totals Units Acquired at Cost 225 units @ $ 15.00 = $ 14.00 = 180 units @ 385 units @ 790 units $ 12.00 = $ 3,375 2,520 4,620 $ 10,515 Units sold at Retail 175 units @ 210 units 385 units @ $ 24.00 $ 24.00

Required information Use the following information for the Exercises 3-7 below. (Algo) [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 385 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 20 January 25 January 30 Activities Beginning inventory Sales Purchase. Sales Purchase Totals Units Acquired at Cost 225 units @ $ 15.00 = $ 14.00 = 180 units @ 385 units @ 790 units $ 12.00 = $ 3,375 2,520 4,620 $ 10,515 Units sold at Retail 175 units @ 210 units 385 units @ $ 24.00 $ 24.00

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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[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 270 units from the January 30 purchase, 5 units from the January 20 purchase, and 10 units from beginning inventory. Date January 1 January 10 January 20 January 25 January 30 Assume the perpetual inventory system is used. Required: Activities Beginning inventory Sales Purchase Sales Purchase Totals Req 1 Req 2 to 4 Sales Cost of goods sold Gross profit Complete this question by entering your answers in the tabs below. Specific Identification $ LAKER COMPANY For Month Ended January 31 Weighted Average $ Units Acquired at Cost 185 units @ $11.00 = 5,600 100 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…