For specific identification, ending inventory consists of 305 units, where 250 are from the January 30 purchase, 5 are from the Jani 20 purchase, and 50 are from beginning inventory Required: 1. Prepare comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $1,600, and that the applicable income tax rate is 40% 2. Which method yields the highest net income? 3. Does net income using weighted average fall above, between, or below that using FIFO and LIFO? 4. If costs were rising instead of falling, which method would yield the highest net income? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $1,600, and that the applicable income tax rate is 40%. (Round your average cost per unit to 2 decimal places.) LAKER COMPANY Income Statements For Month Ended January 31 Specific Weighted Identification Average FIFO Sales Cost of goods sold Gross profit Expenses Income before taxes Income tax expense Net income I Required 2 > 11 Required information The following information applies to the questions displayed below) Part 2 of 2 Laker Company reported the following January purchases and sales data for its only product Date Units sold at Retail Bints Activities Beginning Units Acquired at Cost 145 units@ $7.00 = $1,015 Jan. inventory 70 units@ $6.00 = 420 Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase Totals 105 units @ $16.80 85 units @ $16.00 ebook 190 units@ $5.50 - 405 units 1,045 $2,480 190 units The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 215 units, where 190 are from the January 30 purchase, 5 are from the January 20 purchase, and 20 are from beginning inventory -ferences Required: 1. Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $1,300, and that the applicable income tax rate is 40% 2. Which method yields the highest net income? 3. Does net income using weighted average fall between that using FIFO and LIFO? 4. If costs were rising instead of falling, which method would yield the highest net income
