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Required information Use the following information for the Exercises 3 - 7 below. ( Static ) Skip to question [ The following information applies to

Required information
Use the following information for the Exercises 3-7 below. (Static)
Skip to question
[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 180 units from the January 30 purchase, 5 units from the January 20 purchase, and 15 units from beginning inventory.
Date Activities Units Acquired at Cost Units sold at Retail
January 1 Beginning inventory 140 units @ $ 6.00= $ 840
January 10 Sales 100 units @ $ 15
January 20 Purchase 60 units @ $ 5.00=300
January 25 Sales 80 units @ $ 15
January 30 Purchase 180 units @ $ 4.50=810
Totals 380 units $ 1,950180 units
Exercise 5-7A (Static) Periodic: Gross profit effects of inventory methods LO P3, A1
Assume the periodic inventory system is used.
Required:
Compute gross profit for the month of January for Laker Company for the four inventory methods using the periodic inventory system.
Which method yields the highest gross profit?
Does gross profit using weighted average fall between that using FIFO and LIFO?
If costs were rising instead of falling, which method would yield the highest gross profit?

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