2.

value:

1.90 points

Exercise 5-4 Perpetual: Income effects of inventory methods LO A1

Exercise 5-4 Perpetual: lnoome effects of inventory methods L0 A1 Latter Company reported the following January purchases and sales data for its only produot. Data Activities Unite Acquired at Cool: Unih Sold at Ra Jan. 1 Beginning inventory 13!?! units @ $15!) = $1,353 Jan. 1D Sales 105 units @515.ED Jan. 2D Furohase 25D units @ 55.5!) = LEEIJ Jan. 25 Sales 1?5 units @H Jan. 3D Purchase 12D units @ 5515!} = EH Totals 55D units 993.6% 23D units The Company uses a perpetual inventory system. For speoio identioation. ending inventory oonsists of em units, where 12!] are from the January 3t] purchase, ED are from the January 2t] purchase, and Tr' are from beginning inventory. Required: 1. Complete oomparative inoome statements for the month of January for Latter Company for the four inventory methods. Assume expenses are $1,909, and that the applioable inoome tax rate is 3M5. {Do not round your Intermediate ealeulations.} Sales Cost of goods sold Gross prot Expenses lnoome before taxes Inoome tax expense Met inoome