Which method vields the highest gross profit

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Reference no: EM133906162

Problem

Laker Company reported the following January purchases and sales data for its only product. 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 28 January 25 January 30 Activities Beginning inventory Sales Purchase Sales Totals Units Acquired at Cost 215 units $ 14.00 = 160 units @ S 13.06 E 355 units 730 units $ 11.00 $ 3,010 2,080 3,905 $ 8,995 Units sold at Retail 165 units @ $ 23.00 og units @ $ 23.00 355units Assume the perpetual inventory system Is used.

Task

A. Compute gross profit for the month of January for Laker Company for the four Inventory methods

B. Which method vields the highest gross profit? Get the instant assignment help.

C. Does gross profit using weighted average fall between that using FIFO and LIFO?

D. If costs were rising Instead of falling, which method would yield the highest gross profit?

Reference no: EM133906162

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