W10 Quiz Access: Chapter 05 Help

! Required information Use the following information for the Exercises 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 periodic inventory system. For specific identification, ending inventory consists of 228 units, where 180 are from the January 30 purchase, 5 are from the January 20 purchase, and 43 are from beginning inventory. Units sold at Retail Units Acquired at Cost 154 units @ $6.00 = $ 924 86 units @ $15.00 Date Activities Jan. 1 Beginning inventory Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase Totals 74 units @ $5.00 - 370 94 units @ $15.00 180 units @ $4.50 = 408 units 810 $2,104 180 units 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 1,290 $ 1,290 FIFO LIFO $ $ $ 1,290 $ 1,290 Sales Cost of goods sold Gross profit $ 1,290 $ 1,290 $ 1,290 $ 1,290 Req 1 Req 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