2 of 2 ts kipped eBook Print References Use the following information for the Exercises [The following information applies to the questions displayed below.] Laker Company reported the following January purchases and sales data for its only product. For specific identification, ending inventory consists of 300 units from the January 30 purchase, 5 units from the January 20 purchase, and 25 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 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? Sales Cost of goods sold Gross profit Exercise 5-5 (Algo) Perpetual: Gross profit effects of inventory methods LO A1 Complete this question by entering your answers in the tabs below. Units Acquired at Cost 200 units @ $12.50 = $ 2,500 $ 11.50 = $ 11.00 = 1,495 3,300 $ 7,295 130 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? $ 300 units @ 630 units 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 Weighted Average Specific Identification 0 $ 0 $ FIFO 0 $ Units sold at Retail LIFO 160 units 0 140 units 300 units @ @ $21.50 $ 21.50

[The following information applies to the questions displayed below.] Laker Company reported the following January purchases and sales data for its only product. For specific identification, ending inventory consists of 300 units from the January 30 purchase, 5 units from the January 20 purchase, and 25 units from beginning inventory. Exercise 5.5 (Algo) Perpetual: Gross profit effects of inventory methods LO 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 ylelds 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 yleld the highest gross profit? Complete this question by entering your answers in the tabs below. 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