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.
Date
January
January
January
January
January
Activities
Beginning inventory
Sales
Purchase
Sales
Purchase
Totals
Units Acquired at Cost
Units sold at Retail
Award: points
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 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?
Complete this question by entering your answers in the tabs below.
Compute gross profit for the month of January for Laker Company for the four inventory methods.
Note: Round cost per unit to decimal places and final answers to the nearest whole dollars.
