Just need corrections for wrong answers Requlred Informetlon [The following info
ID: 2338047 • Letter: J
Question
Just need corrections for wrong answers
Requlred Informetlon [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 178 units $23.5e 288 units $23.5e 378 units Activities Units Acquired at Cost Date Jan. 1 Beginning inventory Jan. 18 Sales Jan. 2e Purchase Jan. 25 Sales Jan. 3e Purchase 220 units$14.58-$3, 19e 178 units$13.582,295 48 units $13.8e4,428 Totals 30 units $9,985 The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 360 units, where 340 are from the January 30 purchase, 5 are from the January 20 purchase, and 15 are from beginning inventory. Requlred 1. Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $2,050, 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 between that using FIFO and LIFO? 4. If costs were rising instead of falling. which method would yield the highest net income? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs belowExplanation / Answer
Answer 1. Specific Identification Method Ending Inventory Date Units Cost Total 30-Jan 340 13.00 4,420.00 20-Jan 5 13.50 67.50 1-Jan 15 14.50 217.50 360 4,705.00 Cost of Goods Sold = $9,905 - $4,705 Cost of Goods Sold = $5,200 Weighted Average Date Purchases Cost of Goods Sold Balance Unit Cost Total Unit Cost Total Unit Cost Total 1-Jan 220 14.50 3,190.00 10-Jan 170 14.50 2,465.00 50 14.50 725.00 20-Jan 170 13.50 2,295.00 50 14.50 725.00 170 13.50 2,295.00 220 13.73 3,020.00 25-Jan 200 13.73 2,745.45 20 13.73 274.55 30-Jan 340 13.00 4,420.00 20 13.73 274.55 340 13.00 4,420.00 360 13.04 4,694.55 Total 510 6,715.00 370 5,210.45 FIFO Date Purchases Cost of Goods Sold Balance Unit Cost Total Unit Cost Total Unit Cost Total 1-Jan 220 14.50 3,190.00 10-Jan 170 14.50 2,465.00 50 14.50 725.00 20-Jan 170 13.50 2,295.00 50 14.50 725.00 170 13.50 2,295.00 220 3,020.00 25-Jan 50 14.50 725.00 20 13.50 270.00 150 13.50 2,025.00 200 2,750.00 30-Jan 340 13.00 4,420.00 20 13.50 270.00 340 13.00 4,420.00 360 4,690.00 Total 510 6,715.00 370 5,215.00 LIFO Date Purchases Cost of Goods Sold Balance Unit Cost Total Unit Cost Total Unit Cost Total 1-Jan 220 14.50 3,190.00 10-Jan 170 14.50 2,465.00 50 14.50 725.00 20-Jan 170 13.50 2,295.00 50 14.50 725.00 170 13.50 2,295.00 220 3,020.00 25-Jan 170 13.50 2,295.00 20 14.50 290.00 30 14.50 435.00 200 2,730.00 30-Jan 340 13.00 4,420.00 20 14.50 290.00 340 13.00 4,420.00 360 4,710.00 Total 510 6,715.00 370 5,195.00 LAKER COMPANY Income Statements For the Month Ended Jan 31 Specific Identification Weighted Average FIFO LIFO Sales 8,695.00 8,695.00 8,695.00 8,695.00 Cost of Goods Sold 5,200.00 5,210.45 5,215.00 5,195.00 Gross Profit 3,495.00 3,484.55 3,480.00 3,500.00 Expense 2,050.00 2,050.00 2,050.00 2,050.00 Income Before Tax 1,445.00 1,434.55 1,430.00 1,450.00 Income Tax Expense - 40% 578.00 573.82 572.00 580.00 Net Income 867.00 860.73 858.00 870.00 Answer 2. LIFO Method - $870 Answer 3. Yes Answer 4. FIFO Method
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