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Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below.) Laker Company reported the following January
Required information Use the following information for the Exercises below. [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 Jan. 1 Beginning inventory Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase Totals Units Acquired at cost 165 units@ $9.00 - $1,485 110 unitse $8.00 - 880 125 units @ $18.00 125 units @ $18.00 230 units@ $7.50 = 505 units 1,725 $4,090 250 units The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 255 units, where 230 are from the January 30 purchase, 5 are from the January 20 purchase, and 20 are from beginning inventory. Exercise 5-3 Perpetual: Inventory costing methods LO P1 Required: 1. Complete the table to determine the cost assigned to ending inventory and cost of goods sold using specific identification 2. Determine the cost assigned to ending Inventory and to cost of goods sold using weighted average. 3. Determine the cost assigned to ending inventory and to cost of goods sold using FIFO. 4. Determine the cost assigned to ending inventory and to cost of goods sold using LIFO. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Laker Company reported the following January purchases and sales data for its only product. Unita Acquired at Cost 165 unitse $9.00 - $1,485 Units sold at Retail 125 units $18.00 Dato Activities Jan. 1 Beginning inventory Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase Totals 110 units@ $8.00 - 880 125 units $18.00 230 unitse $7.50 - 505 units 1,725 $4,090 250 units The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 255 units, where 230 are from the January 30 purchase, 5 are from the January 20 purchase, and 20 are from beginning inventory. Exercise 5-4 Perpetual: Income effects of inventory methods LO A1 Required: 1. Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assum expenses are $1,500 and that the applicable income tax rate is 40%. (Round your Intermediate calculations to 2 decimal place FIFO LIFO 4,500 $ 4,500 Sales Cost of goods sold Gross profit Expenses Income before taxes Income tax expense Net income LAKER COMPANY Income Statements For Month Ended January 31 Specific Weighted Identification Average $ 4,500 $ 4,500 $ 2,125 2,375 4,500 1,500 1,500 875 3,000 525 $ 350 $ 3,000 $ 4,500 1,500 3,000 4,500 1,500 3,000 3,000 $ 3,000
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