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t 2 of 2 1 ints eBook Hint Print References [The following information applies to the questions displayed below.] Laker Company reported the following January purchases and sales data for its only product. The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 355 units from the January 30 purchase, 5 units from the January 20 purchase, and 15 units from beginning inventory. Date January 1 January 10 January 20 January 25 January 30 Activities Beginning inventory Sales Purchase Sales Purchase Totals Units Acquired at Cost $ 14.00 = 215 units @ 160 units @ 355 units @ 730 units $ 13.00 = $ 11.00 = $ 3,010 2,080 3,905 $ 8,995 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? 165 units 190 units 355 units 1. Compute gross profit for the month of January for Laker Company for the four inventory methods. 2. Which method yields the highest gross profit? @ @ $ 23.00 $23.00

Compute gross profit for the month of January for Laker Company for the four inventory methods. (Ro decimal places and final answers to the nearest whole dollars.) [The following information applies to the questions displayed below] Laker Company reported the following January purchases and sales data for its only product. The Company uses a perpetual imventory system. For specific identification, ending inventory consists of 355 units from the January 30 . purchase, 5 units from the January 20 purchase, and 15 units from beginning inventory. 1. Compute gross profit for the monti of January for Laker Company for the four inventory methods. 2. Which method yields the highest gross profit? 3. Does gross profit using welghted average foll between that using FFO and LIFO? 4. If costs were rising instead of falling, which method would yleld the highest gross profit? Complete this question by entering your answers in the tabs below. 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

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