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 200 units from the January 30 purchase, 5 units from the January 20 purchase, and 25 units from beginning inventory. Units Acquired at Cost 150 units @ $ 7.50 = Units sold at Retail $ 1,125 110 units @ $ 16.50 Date January 1 January 10 January 20 January 25 January 30 Activities Beginning inventory Sales Purchase Sales Purchase Totals 80 units @ $ 6.50 = 520 90 units @ $ 16.50 @ $ 6.00 = 200 units 430 units 1,200 $ 2,845 200 units Exercise 6-3 (Algo) Perpetual: Inventory costing methods LO P1 Specific Id Weighted Average FIFO LIFO Determine the cost assigned to ending inventory and to cost of goods sold using weighted average. (Round cost per unit to 2 decimal places.) Weighted Average - Perpetual: Cost of Goods Sold Goods Purchased Inventory Balance Date Cost per unit # of units # of units sold Cost per Cost of Goods Sold unit # of units Cost per unit Inventory Balance January 1 150 at $ 7.50 = $ 1,125.00 January 10 110 at $ 7.50 = $ 825.00 January 20 Average cost January 20 January 25 January 30 Totals $ 825.00 Specific Id Weighted Average FIFO LIFO Determine the cost assigned to ending inventory and to cost of goods sold using LIFO. Perpetual LIFO: Cost of Goods Sold # of units Cost per Cost of Goods sold unit Sold Inventory Balance Goods Purchased Cost per # of units unit Date # of units Cost per unit Inventory Balance January 1 150 at $ 7.50 = $ 1,125.00 January 10 January 20 Total January 20 January 25 Total January 25 January 30 Totals Reg 1 Reg 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 Specific Weighted Identification Average FIFO LIFO Sales Cost of goods sold Gross profit $ 0 $ 0 $ 0 $ 0 Reg 1 Reg 2 to 4 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? 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? Specific Id Weighted Average FIFO LIFO Determine the cost assigned to ending inventory and to cost of goods sold using FIFO. Perpetual FIFO: Cost of Goods Sold # of units Cost per Cost of Goods sold unit Sold Inventory Balance Goods Purchased Cost per # of units unit Date # of units Cost per Inventory Balance unit January 1 150 at $ 7.50 = $ 1,125.00 January 10 January 20 Total January 20 January 25 Total January 25 January 30 Totals