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 Units sold at Units Acquired at Cost Date Activities Retail Jan. 1 Beginning inventory Jan.10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase 160 units@ $8.5e- $1,360 120 units@ $17.5e 758 100 units@ $7.50 100 units@ $17.5e 220 units@ $7.00= 1,540 480 units Totals $3se 220 units Required: The Company uses a the January 30 purchase, 5 are from the January 20 purchase, and 35 are from beginning inventory. Determine the cost a ending inventory and to cost of goods sold using (a) specific identification, (b weighted average, (d FIFO, and (d LIFO periodic inventory system. For specific identification, ending inventory consists of 260 units, where Complete this question by entering your answers i in the tabs below. Weighted Average Specific Id FIFO LIFO Determine the cost assigned to ending inventory and to cost of goods sold using specific identification. For specific identification 260 units, where 220 are from the January 30 purchase, 5 are from the January 20 purchase, and 35 are from beginning invent a) Specific Identification Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory Cost of Goods Available for # of units ost per unit # of units in ending inventory # of units Cost per unit Cost of Goods Sold Cost per unit Ending Inventory sold Sale Beginning inventory S 8.50 160 1,360 Purchases Jan. 20 100 $ 7.50 750 Jan 30 220 $ 7.00 1,540 Total 480 3.650 0 0 Specific td Weinhted Average 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 Units sold at Retail Date Activities Units Acquired at Cost Jan. 1 Beginning 160 units@ $8.50-$1,360 inventory Jan. 10 Sales Jan. 20 Purchase Jan.25 Sales Jan. 30 Purchase 120 units@$17.50 750 100 units@ $7.50- 100 units@ $17.s0 220 units@ $7.00- 1,540 480 units Totals $3,650 220 units For specific identification, ending inventory consists of 260 units, where 220 are from the January 30 purchas 20 purchase, and 35 are from beginning inventory Required: 1. Prepare comparative income statements for the month of January for Laker Company for the four inventory expenses are $1,450, and that the applicable income tax rate is 40 % 2 Which method yields the highest net income? 3. Does net income using weighted average fall above, between, or below that using FIFO and LIFO? 4. 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. Required 1 Required 2 Required 3 Required 4 Prepare comparative income statements for the month of January for Laker Company for the four inventory method expenses are $1,450, and that the applicable income tax rate is 40%. ( Round your average cost per unit to 2 decim LAKER COMPANY Income Statements For Month Ended January 31 Specific Identification Weighted Average FIFO LIFO Sales Cost of goods sold Gross profit S 0.00 0.00 S 0.00 0.00 Expenses Income before taxes S 0.00 0.00 0.00 0.00 Income tax expense Net income S 0.00 0.00 S 0.00 0.00
