Question
1. Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $1,400, and that the
1. Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $1,400, and that the applicable income tax rate is 40%. (Round your Intermediate calculations to 2 decimal places.)
[The following information applies to the questions displayed below.]
Laker Company reported the following January purchases and sales data for its only product.
Date | Activities | Units Acquired at Cost | Units sold at Retail | |||||||||||||||
Jan. | 1 | Beginning inventory | 155 | units | @ | $ | 8.00 | = | $ | 1,240 | ||||||||
Jan. | 10 | Sales | 115 | units | @ | $ | 17.00 | |||||||||||
Jan. | 20 | Purchase | 90 | units | @ | $ | 7.00 | = | 630 | |||||||||
Jan. | 25 | Sales | 95 | units | @ | $ | 17.00 | |||||||||||
Jan. | 30 | Purchase | 210 | units | @ | $ | 6.50 | = | 1,365 | |||||||||
Totals | 455 | units | $ | 3,235 | 210 | units | ||||||||||||
The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 245 units, where 210 are from the January 30 purchase, 5 are from the January 20 purchase, and 30 are from beginning inventory.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started