$!$

Required Information

Use the following information for the Exercises $3-7$ below. $($Algo$)$

$[$The following information applles to the questions displayed below$]$

Laker Company reported the followng January purchases and sales data for its only product. For specific identification. ending Inventory consists of $275$ 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 A$1$

Assume the perpetual Inventory system is used.

Required:

Compute gross profit for the month of January for Laker Company for the four Inventory methods.

Which method yleids the highest gross profit?

Does gross profit using welghted average fall between that using FIFO and LIFO?

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.

Req $1$

Req $2$ to $4$

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.

$\backslash$table$[[$LAKER COMPANY$],[$For Month Ended January $31],[,\backslash$table$[[$Specific$],[$Identification$]],\backslash$table$[[$Weighted$],[$Average$]],$FIFO,LIFO$],[$Sales$,-,+2,,],[$Cost of goods sold,$7,,,],[$Gross profit,$+2,+2,,]]$

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. For specific identification, ending inventory consists of $275$ units from the January $30$ purchase, $5$ units from the January $20$ purchase, and $25$ units from beginning inventory.

$\backslash$table$[[$Date$,$Activities,Units Acquired at cost$,,$Units sold at Retail$],[$January$,$Beginning,inventory,$175$ units,e$,$$$10\mathrm{.}00=,$$$1,750,,,,],[$January$,$sales,,,,,,$135$ units,e$,$$$,19\mathrm{.}60],[$January$,$Purchase,,$130$ units,$9,$$$9\mathrm{.}00=,1,170,,,,],[$January$,$sales,,,,,,we units,e$,,19\mathrm{.}80],[$January$,$Purchase,,$275$ units,e$,$$$7\mathrm{.}60=,1,925,,,,],[,$Totals,,$580$ units,,,$$4,345,275$ units,,,$]]$

Exercise $5-5($Algo$)$ Perpetual: Gross profit effects of inventory methods LO A$1$

Assume the perpetual inventory system is used.

Required:

Compute gross profit for the month of January for Laker Company for the four inventory methods.

$2$ Which method ylelds 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 yleld the highest gross profit?

Complete this question by entering vour answers in the tabs below.

Req $1$

Req $2$ to $4$

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?

$\backslash$table$[[2.$ 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?$]]$

Reir to $4$