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Exercise 5-5 Algo Perpetual: Gross profit effects of inventory methods LO P1

Required information Use the following information for the Exercises 3-7 below. (Algo) The following information applies to the questions displayed below) Laker Company reported the following January purchases and soles data for its only product. The Company uses a perpetual inventory system For specific identification, ending inventory consists of 210 units from the January 30 purchase, 5 units from the January 20 purchase, and 30 units from beginning inventory Motivities Units Aequired at Cost Units sold at Retail January 1 Beginning inventory 155 unit 5 8.00 - $ 1,240 January 10 Sales $ 17.00 January 20 Purchase 90 units January 25 $ 17.00 January 30 210 units Total 3,235 Date 115 units 7.00 - 630 Sales Purchase 95 unite $ 6.50 11265 455 units 210 units Exercise 5-5 (Algo) Perpetual: Gross profit effects of inventory methods LO A1 1. Compute gross profit for the month of January for Coker Company for the four inventory methods 2. Which method yields the highest gross profit? 3. Does gross profit osing weighted average falt between that using FIFO on LIFO? 4. If costs were visiva instead of falling, which method would yold the highest gross profit? 3. Does gross profit using weighted average fall between that using FIFO and LIFO? 4.1f costs were rising instead of falling, which method would yield the highest gross profit? 2 Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 to 4 look Compute gross profit for the month of January for Laker Company for the four inventory methods. (Round cost per unit to 2 decimal places and final answers to the nearest whole dollars) Hint pen erences LAKER COMPANY For Month Ended January 31 Specific Weighted Identification Average FIFO LIFO + Sales Cost of goods sold Gross profit Req 2 to 4 > Required information 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. Reg 1 Reg 2 to 4 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 pront? 2. Which method yields the highest gross profit? 3. Does gross profit using weighted average tall between that using FIFO and LIFO? 4. It costs were rising instead of falling, which method would yield the highest gross profit?

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