Solve $6-6$ A using $6-3$ A

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

Required

The company uses a perpetual inventory system. Determine the cost assigned to ending inventory and to cost of

goods sold using $(a)$ specific identification, $(b)$ weighted average, $(c)$ FIFO, and $(d)$ LIFO. $($Round per unit costs

and inventory amounts to cents.$)$ 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.

Refer to sales and purchases data from Exercise $6-3$ and 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.

Exercise $6-4$

Perpetual: Journalizing

transactions P$1$

Use the data in Exercise $6-3$ to compute gross profit for the month of January for Laker Company similar

to that in Exhibit $6\mathrm{.}8$ for the four inventory methods.

Which method yields the highest gross profit?

Does gross profit using weighted average fall above, between, or below that using FIFO and LIFO?

If costs were rising instead of falling, which method would yield the highest gross profit?

Refer to the information in Exercise $6-3$ and assume the periodic inventory system is used. Determine the

costs assigned to ending inventory and to cost of goods sold using $($a$)$ specific identification, $($b$)$ weighted

average, $(c)FIFO,$ and $($d$)$ LIFO. $($Round per unit costs and inventory amounts to cents.$)$ For specific

identification, ending inventory consists of $180$ units from the January $30$ purchase, $5$ units from the

Exercise $6-5$

Perpetual: Gross profit

effects of inventory methods

A$1$

Exercise $6-6$

Periodic: Inventory costing

P$3$

Use the data and results from Exercise $6-6$ to compute gross profit for the month of January for the com$-$

pany similar to that in Exhibit $6\mathrm{.}8$ for the four inventory methods.

Required

Which method yields the highest gross profit?

Does gross profit using weighted average fall above, between, or below that using FIFO and LIFO?

If costs were rising instead of falling, which method would yield the highest gross profit?

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

Required

The company uses a perpetual inventory system. Determine the cost assigned to ending inventory and to cost of

goods sold using $(a)$ specific identification, $(b)$ weighted average, $(c)$ FIFO, and $(d)$ LIFO. $($Round per unit costs

and inventory amounts to cents.$)$ 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.

Refer to sales and purchases data from Exercise $6-3$ and 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.

Exercise $6-4$

Perpetual: Journalizing

transactions $P1$

Use the data in Exercise $6-3$ to compute gross profit for the month of January for Laker Company similar

to that in Exhibit $6\mathrm{.}8$ for the four inventory methods.

Which method yields the highest gross profit?

Does gross profit using weighted average fall above, between, or below that using FIFO and LIFO?

If costs were rising instead of falling, which method would yield the highest gross profit?

Refer to the information in Exercise $6-3$ and assume the periodic inventory system is used. Determine the

costs assigned to ending inventory and to cost of goods sold using $($a$)$ specific identification, $($b$)$ weighted

average, $(c)FIFO,$ and $($d$)$ LIFO. $($Round per unit costs and inventory amounts to cents.$)$ For specific

identification, ending inventory consists of $180$ units from the January $30$ purchase, $5$ units from the

Exercise $6-5$

Perpetual: Gross profit

effects of inventory methods

A$1$

Exercise $6-6{?}^A$

Periodic: Inventory costing

P$3$