min.8 Required information[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 270 units from the January 30 purchase, 5 units from the January 20 purchase, and 10 unitsfrom beginning inventory.DateJanuary 1ActivitiesBeginning inventoryJanuary 10January 20January 25SalesPurchaseSalesJanuary 30PurchaseTotals185 units @100 units @270 units @555 unitsUnits Acquired at Cost$ 11.00 =Units sold at Retail$ 2,035145 units@$ 20.00$ 10.00 =1,000125 units$ 20.00$ 9.50 =2,565$ 5,600270 unitsAssume the periodic inventory system is used.Required:1. Compute gross profit for the month of January for Laker Company for the four inventory methods using the periodic inventorysystem.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?× Answer is complete but not entirely correct.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 using the periodic inventorysystem.Note: Round cost per unit to 2 decimal places and final answers to the nearest whole dollars.LAKER COMPANYFor Month Ended January 31SalesCost of goods soldGross profit$SASSpecificIdentificationWeightedAverageFIFOLIFO5,400 $5,400 $5,400 $5,4002,8752,727 X2,8852,5652,525$2,673$EA2,515 $2,835

The specific identification method: It is one of the methods of inventory valuation, specifically…

ompany reported the following January purchases and sales data for its only product. For specific identification, ventory consists of 270 units from the January 30 purchase, 5 units from the January 20 purchase, and 10 unit ginning inventory. y 1 Activities Beginning inventory Units Acquired at Cost Units sold at Retail 185 units @ $ 11.00 = $ 2,035 y 10 Sales 145 units @ $ 20.00 y 20 Purchase 100 units @ $ 10.00 = 1,000 y 25 Sales 125 units @ $ 20.00 ry 30 Purchase 270 units @ $ 9.50 = Totals 555 units 2,565 $ 5,600 270 units

ompany reported the following January purchases and sales data for its only product. For specific identification, ventory consists of 270 units from the January 30 purchase, 5 units from the January 20 purchase, and 10 unit ginning inventory. y 1 Activities Beginning inventory Units Acquired at Cost Units sold at Retail 185 units @ $ 11.00 = $ 2,035 y 10 Sales 145 units @ $ 20.00 y 20 Purchase 100 units @ $ 10.00 = 1,000 y 25 Sales 125 units @ $ 20.00 ry 30 Purchase 270 units @ $ 9.50 = Totals 555 units 2,565 $ 5,600 270 units

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 5PA

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