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 | 170 | units | @ $7.40 | = | $ | 1,258 | ||||||||
| Jan. | 10 | Sales | 100 | units | @$15.40 | |||||||||||
| Jan. | 20 | Purchase | 240 | units | @ $6.40 | = | 1,536 | |||||||||
| Jan. | 25 | Sales | 165 | units | @$15.40 | |||||||||||
| Jan. | 30 | Purchase | 110 | units | @ $5.40 | = | 594 | |||||||||
| Totals | 520 | units | $ | 3,388 | 265 | units | ||||||||||
| The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 255 units, where 110 are from the January 30 purchase, 80 are from the January 20 purchase, and 65 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 $1,800, and that the applicable income tax rate is 39%. (Do not round your Intermediate calculations.) |
| 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 | 170 | units | @ $7.40 | = | $ | 1,258 | ||||||||
| Jan. | 10 | Sales | 100 | units | @$15.40 | |||||||||||
| Jan. | 20 | Purchase | 240 | units | @ $6.40 | = | 1,536 | |||||||||
| Jan. | 25 | Sales | 165 | units | @$15.40 | |||||||||||
| Jan. | 30 | Purchase | 110 | units | @ $5.40 | = | 594 | |||||||||
| Totals | 520 | units | $ | 3,388 | 265 | units | ||||||||||
| The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 255 units, where 110 are from the January 30 purchase, 80 are from the January 20 purchase, and 65 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 $1,800, and that the applicable income tax rate is 39%. (Do not round your Intermediate calculations.) |
| 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 | 170 | units | @ $7.40 | = | $ | 1,258 | ||||||||
| Jan. | 10 | Sales | 100 | units | @$15.40 | |||||||||||
| Jan. | 20 | Purchase | 240 | units | @ $6.40 | = | 1,536 | |||||||||
| Jan. | 25 | Sales | 165 | units | @$15.40 | |||||||||||
| Jan. | 30 | Purchase | 110 | units | @ $5.40 | = | 594 | |||||||||
| Totals | 520 | units | $ | 3,388 | 265 | units | ||||||||||
| The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 255 units, where 110 are from the January 30 purchase, 80 are from the January 20 purchase, and 65 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 $1,800, and that the applicable income tax rate is 39%. (Do not round your Intermediate calculations.) |
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Strategic Business Management From Planning To Performance
Authors: Gary Cokins
1st Edition
1937352358, 978-1937352356
