Question
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.
| 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 | 300 | units | @ $7.60 | = | $ | 2,280 | ||||||||
| Jan. | 10 | Sales | 180 | units | @ $18.20 | |||||||||||
| Jan. | 20 | Purchase | 220 | units | @ $6.60 | = | 1,452 | |||||||||
| Jan. | 25 | Sales | 160 | units | @ $18.20 | |||||||||||
| Jan. | 30 | Purchase | 340 | units | @ $6.10 | = | 2,074 | |||||||||
| Totals | 860 | units | $ | 5,806 | 340 | units | ||||||||||
| Laker uses a periodic inventory system. For specific identification, ending inventory consists of 520 units, where 340 are from the January 30 purchase, 85 are from the January 20 purchase, and 95 are from beginning inventory. |
| Required: |
| 1. | Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $2,600, and that the applicable income tax rate is 40%. (Round your average cost per unit to 2 decimal places.) |
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Financial Accounting Information For Decisions
Authors: John J Wild
3rd Edition
0072974729, 978-0072974720
