ending inventory consists of 290 units from the January 30 purchase, 5 units from the January...

 

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ending inventory consists of 290 units from the January 30 purchase, 5 units from the January 20 purchase, and 20 uni from beginning inventory. Date January 1 January 10 Activities Beginning inventory Sales Units Acquired at Cost 195 units $ 12.00 = $2,340 Units sold at Retail 155 units @ $ 21.00 January 20 January 25 Purchase Sales January 30 Purchase Totals 120 units $ 11.00 = 290 units @ $ 10.50 = 605 units. 1,320 135 units @ $ 21.00 3,045 $ 6,705 290 units Assume the periodic inventory system is used. Required: 1. Compute gross profit for the month of January for Laker Company for the four inventory methods using the periodic inve 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? ending inventory consists of 290 units from the January 30 purchase, 5 units from the January 20 purchase, and 20 uni from beginning inventory. Date January 1 January 10 Activities Beginning inventory Sales Units Acquired at Cost 195 units $ 12.00 = $2,340 Units sold at Retail 155 units @ $ 21.00 January 20 January 25 Purchase Sales January 30 Purchase Totals 120 units $ 11.00 = 290 units @ $ 10.50 = 605 units. 1,320 135 units @ $ 21.00 3,045 $ 6,705 290 units Assume the periodic inventory system is used. Required: 1. Compute gross profit for the month of January for Laker Company for the four inventory methods using the periodic inve 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?

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Answer To compute the gross profit for the month of January for Laker Company using the periodic inv... View the full answer