Laker Company reported the following January purchases and sales data for its only product. The Company...

       

Transcribed Image Text:

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 20 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 80 units 180 units @$15 @$15 Record journal entries for Laker Company's sales and purchases transactions. Assume for this assignment that the company uses a perpetual inventory system and FIFO. All sales and purchases are made on account, and no discounts are offered. Journal entry worksheet < 1 2 Date January 30 3 Record the purchase of inventory. Note: Enter debits before credits. Record entry 4 5 General Journal Clear entry 6 Debit Credit View general journal > Journal entry worksheet < 1 2 Record the cost of sale. 3 Note: Enter debits before credits. Date January 25 Record entry 4 LO 5 General Journal Clear entry 6 Debit Credit View general journal > Journal entry worksheet 1 2 3 Record the sale of goods. Note: Enter debits before credits. Date January 25 Record entry 4 5 6 General Journal Clear entry Debit Credit View general journal Journal entry worksheet 1 2 Date January 20 3 Record the purchase of inventory. Note: Enter debits before credits. Record entry 4 5 6 General Journal Clear entry Debit Credit View general journal > Journal entry worksheet < 1 2 Record the cost of sale. Date January 10 3 Note: Enter debits before credits. Record entry 4 5 6 General Journal Clear entry Debit Credit View general journal > 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? 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? 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? Complete this question by entering your answers in the tabs below. Req 1 Req 2 to 4 Compute gross profit for the month of January for Laker Company for the four inventory methods. (Round cost per unit to 2 decimal places and final answers to the nearest whole dollars.) Sales Cost of goods sold Gross profit LAKER COMPANY For Month Ended January 31 Specific Weighted Average Identification $ 0 $ 0 $ FIFO 0 $ LIFO 0 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 20 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 80 units 180 units @$15 @$15 Record journal entries for Laker Company's sales and purchases transactions. Assume for this assignment that the company uses a perpetual inventory system and FIFO. All sales and purchases are made on account, and no discounts are offered. Journal entry worksheet < 1 2 Date January 30 3 Record the purchase of inventory. Note: Enter debits before credits. Record entry 4 5 General Journal Clear entry 6 Debit Credit View general journal > Journal entry worksheet < 1 2 Record the cost of sale. 3 Note: Enter debits before credits. Date January 25 Record entry 4 LO 5 General Journal Clear entry 6 Debit Credit View general journal > Journal entry worksheet 1 2 3 Record the sale of goods. Note: Enter debits before credits. Date January 25 Record entry 4 5 6 General Journal Clear entry Debit Credit View general journal Journal entry worksheet 1 2 Date January 20 3 Record the purchase of inventory. Note: Enter debits before credits. Record entry 4 5 6 General Journal Clear entry Debit Credit View general journal > Journal entry worksheet < 1 2 Record the cost of sale. Date January 10 3 Note: Enter debits before credits. Record entry 4 5 6 General Journal Clear entry Debit Credit View general journal > 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? 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? 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? Complete this question by entering your answers in the tabs below. Req 1 Req 2 to 4 Compute gross profit for the month of January for Laker Company for the four inventory methods. (Round cost per unit to 2 decimal places and final answers to the nearest whole dollars.) Sales Cost of goods sold Gross profit LAKER COMPANY For Month Ended January 31 Specific Weighted Average Identification $ 0 $ 0 $ FIFO 0 $ LIFO 0