exercise 5-4

140 units o 56.00 = 840 100 units $15 Jan 10 Jan 20 Jan. 25 Jan. 30 G0 units $5.00 300 Sales. Purchase Sales. Purchase Totals BO units $15 180 units $4.50 380 units 810 $1,950 180 units Required The company uses a periodic 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 200 units, where 180 are from the January 30 purchase, 5 are from the January 20 purchase, and 15 are from beginning inventory Use the data in Exercise 5-3 to compute gross profit for the month of January for Laker Company similar to that in Exhibit 5.8 for the four inventory methods. 1. Which method yields the highest gross profit? 2. Does gross profit using weighted average fall above, between, or below that using FIFO and LIFO? 3. If costs were rising instead of falling, which method would yield the highest gross profit? Exercise 5-4 Periodic: Gross profit effects of inventory methods A1 Refer to the information in Exercise 5-3 and assume the perpetual inventory system is used. Determine the Exercise 5-54 costs assigned to ending inventory and to cost of goods sold using (a) specific identification. (b) weighted Perpetual: Inventory costin average. () FIFO, and (d) LIFO. (Round per unit costs and inventory amounts to cents. For specific P3 identification, ending inventory consists of 200 units, where 180 are from the January 30 purchase. 5 are from the January 20 purchase, and 15 are from beginning inventory. Refer to sales and purchases data from Exercise 5-3 and record journal entries for Laker Company's sales Exercise 5-6 and purchases transactions. Assume for this assignment that the company uses a perpetual inventory Perpetual: Journalizing system and FIFO. All sales and purchases are made on account, and no discounts are offered. transactions P3 Use the data and results from Exercise 5-5 to compute gross profit for the month of January for the com- Exercise 5-74 Permetial Grass nuimus forth four inventory methods