Question
Required information [The following information applies to the questions displayed below.] Laker Company reported the following January purchases and sales data for its only product.
Required information
[The following information applies to the questions displayed below.]
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 | 160 | units | @ | $ | 8.50 | = | $ | 1,360 | ||||||||
Jan. | 10 | Sales | 120 | units | @ | $ | 17.50 | |||||||||||
Jan. | 20 | Purchase | 100 | units | @ | $ | 7.50 | = | 750 | |||||||||
Jan. | 25 | Sales | 120 | units | @ | $ | 17.50 | |||||||||||
Jan. | 30 | Purchase | 220 | units | @ | $ | 7.00 | = | 1,540 | |||||||||
Totals | 480 | units | $ | 3,650 | 240 | units | ||||||||||||
The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 240 units, where 220 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 $1,450, and that the applicable income tax rate is 40%. (Round your Intermediate calculations to 2 decimal places.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started