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I just need help with cost of goods sold and income tax expense Laker Company reported the following January purchases and sales data for its
I just need help with cost of goods sold and income tax expense
Laker Company reported the following January purchases and sales data for its only product. Date Activities Units Acquired at Cost Jan. 1 Beginning inventory 165 unitse s9.00 $1,485 Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase Units sold at Retail 125 units $18.00 105 units $18.00 110 units $8.00880 230 units e$7.501,725 505 units Totals $4,090 230 units r specific identification, ending inventory consists of 275 units, where 230 are from the January 30 purchase, 5 are from the January 0purchase, and 40 are from beginning inventory. equired Prepare comparative income statements for the month of January for Laker Company for the four inventory methods. Assume penses are $1,500, and that the applicable income tax rate is 40%. Which method yields the highest net income? Does net income using weighted average fall above, between, or below that using FIFO and LIFO? 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 Laker Company reported the following January purchases and sales data for its only product. Date Activities Units Acquired at Cost Jan. 1 Beginning inventory 165 unitse s9.00 $1,485 Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase Units sold at Retail 125 units $18.00 105 units $18.00 110 units $8.00880 230 units e$7.501,725 505 units Totals $4,090 230 units r specific identification, ending inventory consists of 275 units, where 230 are from the January 30 purchase, 5 are from the January 0purchase, and 40 are from beginning inventory. equired Prepare comparative income statements for the month of January for Laker Company for the four inventory methods. Assume penses are $1,500, and that the applicable income tax rate is 40%. Which method yields the highest net income? Does net income using weighted average fall above, between, or below that using FIFO and LIFO? 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 belowStep by Step Solution
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