Laker Company reported the following January purchases and sales data for its only product. The Company...
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Laker Company reported the following January purchases and sales data for its only product. The Company uses a periodic inventory system. For specific identification, ending inventory consists of 232 units, where 180 are from the January 30 purchase, 5 are from the January 20 purchase, and 47 are from beginning inventory. Date Activities Jan. 1 Beginning inventory Units Acquired at Cost 156 units @ $6.00 = $ 936 Units sold at Retail Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase 84 units @ $15.00 Totals 76 units @ $5.00 = 180 units @ $4.50 = 412 units 380 96 units @ $15.00 810 $2,126 180 units Exercise 5-7A (Algo) Perpetual: Gross profit effects of inventory methods LO P3, A1 Assume the perpetual inventory system is used. Required: 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. Note: Round cost per unit to 2 decimal places and final answers to the nearest whole dollars. LAKER COMPANY For Month Ended January 31 Specific Identification Weighted Average FIFO LIFO Sales Cost of goods sold Gross profit $ 0 $ 0 $ 0 $ 0 Required information Use the following information for the Exercises 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 periodic inventory system. For specific identification, ending inventory consists of 232 units, where 180 are from the January 30 purchase, 5 are from the January 20 purchase, and 47 are from beginning inventory. Date Activities Jan. 1 Beginning inventory Units Acquired at Cost 156 units @ $6.00 = $ Units sold at Retail 936 Jan. 10 Sales 84 units @ $15.00 Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase Totals 76 units @ $5.00 = 180 units @ $4.50 = 412 units 380 96 units @ $15.00 810 $2,126 180 units Exercise 5-7A (Algo) Perpetual: Gross profit effects of inventory methods LO P3, A1 Assume the perpetual inventory system is used. Required: 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 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? < Req 1 Req 2 to 4 > Laker Company reported the following January purchases and sales data for its only product. The Company uses a periodic inventory system. For specific identification, ending inventory consists of 232 units, where 180 are from the January 30 purchase, 5 are from the January 20 purchase, and 47 are from beginning inventory. Date Activities Jan. 1 Beginning inventory Units Acquired at Cost 156 units @ $6.00 = $ 936 Units sold at Retail Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase 84 units @ $15.00 Totals 76 units @ $5.00 = 180 units @ $4.50 = 412 units 380 96 units @ $15.00 810 $2,126 180 units Exercise 5-7A (Algo) Perpetual: Gross profit effects of inventory methods LO P3, A1 Assume the perpetual inventory system is used. Required: 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. Note: Round cost per unit to 2 decimal places and final answers to the nearest whole dollars. LAKER COMPANY For Month Ended January 31 Specific Identification Weighted Average FIFO LIFO Sales Cost of goods sold Gross profit $ 0 $ 0 $ 0 $ 0 Required information Use the following information for the Exercises 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 periodic inventory system. For specific identification, ending inventory consists of 232 units, where 180 are from the January 30 purchase, 5 are from the January 20 purchase, and 47 are from beginning inventory. Date Activities Jan. 1 Beginning inventory Units Acquired at Cost 156 units @ $6.00 = $ Units sold at Retail 936 Jan. 10 Sales 84 units @ $15.00 Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase Totals 76 units @ $5.00 = 180 units @ $4.50 = 412 units 380 96 units @ $15.00 810 $2,126 180 units Exercise 5-7A (Algo) Perpetual: Gross profit effects of inventory methods LO P3, A1 Assume the perpetual inventory system is used. Required: 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 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? < Req 1 Req 2 to 4 >
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To compute the gross profit for the month of January for Laker Company using different inventory methods we need to calculate the cost of goods sold C... View the full answer
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