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 300 units from the January 30 purchase, 5 units from the January 20 purchase, and 25 units from beginning inventory. Date January 1 January 10 January 20 January 25 January 30 Activities Beginning inventory Sales Purchase Sales Purchase Totals Assume the periodic Inventory system is used. Required: Units Acquired at Cost 200 units @ $ 12.50 = 130 units @ $ 11.50 = 300 units @ $ 11.00 = 630 units $ 2,500 1,495 3,300 $ 7,295 Units sold at Retail @ 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? 160 units 140 units 300 units $ 21.50 $ 21.50 1. Compute gross profit for the month of January for Laker Company for the four Inventory methods using the periodic Inventory system. 2. Which method yields the highest gross profit?
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 300 units from the January 30 purchase, 5 units from the January 20 purchase, and 25 units from beginning inventory. Date January 1 January 10 January 20 January 25 January 30 Activities Beginning inventory Sales Purchase Sales Purchase Totals Assume the periodic Inventory system is used. Required: Units Acquired at Cost 200 units @ $ 12.50 = 130 units @ $ 11.50 = 300 units @ $ 11.00 = 630 units $ 2,500 1,495 3,300 $ 7,295 Units sold at Retail @ 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? 160 units 140 units 300 units $ 21.50 $ 21.50 1. Compute gross profit for the month of January for Laker Company for the four Inventory methods using the periodic Inventory system. 2. Which method yields the highest gross profit?
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter6: Inventories
Section: Chapter Questions
Problem 1PB: FIFO perpetual inventory The beginning inventory at Dunne Co. and data on purchases and sales for a...
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