Laker Company reported the following January purchases and sales data for its only product. The Company uses aperpetual inventory system. For specific identification, ending inventory consists of 250 units from the January 30purchase, 5 units from the January 20 purchase, and 20 units from beginning inventory.DateJanuary 1January 10January 20January 25January 30ActivitiesBeginning inventorySalesPurchaseSalesPurchaseTotalsUnits Acquired at Cost$ 9.00 -$ 8.00 =165 units @110 units250 units525 units1$ 7.50 =$ 1,4858801,875$ 4,240Units sold at Retail125 units125 units250 units$18.00$18.00 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?Complete this question by entering your answers in the tabs below.Req 1Req 2 to 4Compute gross profit for the month of January for Laker Company for the four inventory methods. (Round cost per unit to 2decimal places and final answers to the nearest whole dollars.)SalesCost of goods soldGross profitLAKER COMPANYFor Month Ended January 31SpecificIdentification0WeightedAverage0FIFO0LIFO

Name: Laker Company reported the following January purchases and sales data
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Description: Laker Company reported the following January purchases and sales data for its only product. The Company uses aperpetual inventory system. For specific identification, ending inventory consists of 250 units from the January 30purchase, 5 units from t

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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 250 units from the January 30 purchase, 5 units from the January 20 purchase, and 20 units from beginning inventory. Date January 1 January 10 January 20 January 25 January 30 Activities Beginning inventory Sales Purchase Sales Purchase Totals Units Acquired at Cost $ 9.00 = $ 8.00 = $ 7.50 = 165 units @ 110 units @ 250 units @ 525 units $ 1,485 880 1,875 $ 4,240 Units sold at Retail 125 units 125 units 250 units $ 18.00 $ 18.00

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 250 units from the January 30 purchase, 5 units from the January 20 purchase, and 20 units from beginning inventory. Date January 1 January 10 January 20 January 25 January 30 Activities Beginning inventory Sales Purchase Sales Purchase Totals Units Acquired at Cost $ 9.00 = $ 8.00 = $ 7.50 = 165 units @ 110 units @ 250 units @ 525 units $ 1,485 880 1,875 $ 4,240 Units sold at Retail 125 units 125 units 250 units $ 18.00 $ 18.00

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter7: Inventories

Section: Chapter Questions

Problem 2PEA: Beginning inventory, purchases, and sales for Item ProX2 are as follows: Assuming a perpetual...

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