Answered

IDNLearn.com: Where questions are met with accurate and insightful answers. Get prompt and accurate answers to your questions from our experts who are always ready to help.

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

We appreciate your contributions to this forum. Don't forget to check back for the latest answers. Keep asking, answering, and sharing useful information. Your questions are important to us at IDNLearn.com. Thanks for stopping by, and come back for more reliable solutions.