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Required information Use the following information for the Exercises 3-7 below. (Algo) [The following information applies to the questions displayed below.] Laker Company reported
Required information Use the following information for the Exercises 3-7 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 perpetual inventory system. For specific identification, ending inventory consists of 370 units from the January 30 purchase, 5 units from the January 20 purchase, and 15 units from beginning inventory. Date January 1 January 10 January 20 Activities Beginning inventory Sales January 25 January 30 Purchase Sales Purchase Totals Units Acquired at Cost 220 units $14.50- 170 units $13.50- Units sold at Retail $3,190 170 units $ 23.50 2,295 200 units 4 $ 23.50 370 units $13.00- 760 units 4,810 $ 10,295 370 units Exercise 5-5 (Algo) Perpetual: Gross profit effects of inventory methods LO A1 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? Answer is not complete. 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. (Round cost per unit to 2 decimal places and final answers to the nearest whole dollars.) LAKER COMPANY For Month Ended January 31 Sales Cost of goods sold Gross profit Specific Weighted Identification FIFO LIFO Average 10,195 $ 10,295 S 10.295 $10.295 10,195 $ 10.295 10,295 $10,295
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