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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 units from the January purchase, units from the January purchase, and units
from beginning inventory.
Assume the periodic inventory system is used.
Required:
Compute gross profit for the month of January for Laker Company for the four inventory methods using the periodic inventory
system.
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?
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Req to
Compute gross profit for the month of January for Laker Company for the four inventory methods using the periodic inventory
system.
Note: Round cost per unit to decimal places and final answers to the nearest whole dollars.
