IDNLearn.com offers a comprehensive solution for finding accurate answers quickly. Our experts provide timely and precise responses to help you understand and solve any issue you face.

Compute gross profit for the month of January for Laker Company for the four inventory methods. 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?

Sagot :

Answer:

1. Net Income Specific Identification $255

LIFO $258

FIFO $246

Weighted Average $251

2. LIFO

3. Yes

4. FIFO

Explanation:

Particulars : Specific identification, Weighted Avg, FIFO, LIFO

Sales:  $ 2700 , 2700, 2700, 2700

Cost of Goods Sold $ 1025, 1032, 1040, 1020

Gross Profit $ 1675, 1668, 1660, 1680

Expenses $1250 , 1250, 1250, 1250

Income before taxes $425, 418, 410, 430

Income Tax $170, 167, 164, 172

Net Income $255, 251, 246, 258

Thank you for joining our conversation. Don't hesitate to return anytime to find answers to your questions. Let's continue sharing knowledge and experiences! Thank you for trusting IDNLearn.com with your questions. Visit us again for clear, concise, and accurate answers.