Question
Perpetual: Income effects of inventory methods LO A1 Laker Company reported the following January purchases and sales data for its only product. Date Activities Units
Perpetual: Income effects of inventory methods LO A1
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 | 140 | units | @ $6.00 | = | $ | 840 | ||||||||
Jan. | 10 | Sales | 100 | units | @$15 | |||||||||||
Jan. | 20 | Purchase | 60 | units | @ $5.00 | = | 300 | |||||||||
Jan. | 25 | Sales | 80 | units | @$15 | |||||||||||
Jan. | 30 | Purchase | 180 | units | @ $4.50 | = | 810 | |||||||||
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Totals | 380 | units | $ | 1,950 | 180 | units | ||||||||||
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The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 200 units, where 180 are from the January 30 purchase, 5 are from the January 20 purchase, and 15 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 $1,250, and that the applicable income tax rate is 40%.(Round your Intermediate calculations to 2 decimal places.)
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