[TC FOOTing nation applies to the questions displayed below.j Laker Company reported the following January purchases and sales data for its only product. For specific identification, ending inventory consists of 240 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 Beginning inventory Sales Purchase Sales Purchase Totals Assume the perpetual inventory system is used. Required: Activities Req 1 Req 2 to 4 Complete this question by entering your answers in the tabs below. Sales Cost of goods sold Gross profit Units Acquired at Cost 160 units @ $8.50 = 100 units @ $ 7.50 = $ 7.00 = $ 240 units@ 500 units Exercise 6-5 (Algo) Perpetual: Gross profit effects of inventory methods LO A1 LAKER COMPANY For Month Ended January 31 Weighted Average Specific Identification 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? 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. 0 $ 0 $ FIFO $ 1,360 0 $ 750 LIFO 1,680 $ 3,790 0 Units sold at Retail 120 units @ $17.50 @ $17.50 120 units 240 units
[TC FOOTing nation applies to the questions displayed below.j Laker Company reported the following January purchases and sales data for its only product. For specific identification, ending inventory consists of 240 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 Beginning inventory Sales Purchase Sales Purchase Totals Assume the perpetual inventory system is used. Required: Activities Req 1 Req 2 to 4 Complete this question by entering your answers in the tabs below. Sales Cost of goods sold Gross profit Units Acquired at Cost 160 units @ $8.50 = 100 units @ $ 7.50 = $ 7.00 = $ 240 units@ 500 units Exercise 6-5 (Algo) Perpetual: Gross profit effects of inventory methods LO A1 LAKER COMPANY For Month Ended January 31 Weighted Average Specific Identification 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? 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. 0 $ 0 $ FIFO $ 1,360 0 $ 750 LIFO 1,680 $ 3,790 0 Units sold at Retail 120 units @ $17.50 @ $17.50 120 units 240 units
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:LITE FORing nation applies to the questions displayet veion.j
Laker Company reported the following January purchases and sales data for its only product. For specific identification,
ending inventory consists of 240 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
Beginning inventory
Sales
Purchase
Sales
Purchase
Totals
Assume the perpetual inventory system is used.
Required:
Activities
Req 1
Complete this question by entering your answers in the tabs below.
Req 2 to 4
Sales
Cost of goods sold
Gross profit
Exercise 6-5 (Algo) Perpetual: Gross profit effects of inventory methods LO A1
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?
Units Acquired at Cost
160 units @ $ 8.50 =
$7.50 =
$7.00 =
100 units @
240 units @
500 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?
$
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.
0 $
0 $
$ 1,360
FIFO
750
0 $
1,680
$ 3,790
LIFO
0
Units sold at Retail
120 units
120 units
240 units
@
$17.50
$17.50
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