Question
Laker Company reported the following January purchases and sales data for its only product.
The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 340 units, where 320 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 $1,950, and that the applicable income tax rate is 40%. (Round your Intermediate calculations to 2 decimal places.)
Date Activities Units Acquired at Cost Units sold at Retail Jan. 1 Beginning inventory 210 units @ $ 13.50 = $ 2,835 Jan. 10 Sales 160 units @ $ 22.50 Jan. 20 Purchase 150 units @ $ 12.50 = 1,875 Jan. 25 Sales 180 units @ $ 22.50 Jan. 30 Purchase 320 units @ $ 12.00 = 3,840 Totals 680 units $ 8,550 340 units 3oues-Blackboar Connect CSecure https://newconnect.mheducation.co Chapter 5 Hamework Help Save & Exit Submie Chack my work 2 Required information he roioing iitomation apoies to the questions displayed below Laker Cumpary reported Lhe following?druery pur dim dnd sales dele fu' ?Ls only producL 125 Units solc at Retai1 16e unsts 22.5e lse units?$22.se units Acquired st Cost 218 unit$13.50-52,335 Jan. 1 Beginning inventory Purchase lseunits $12.30. 1,875 Jan. Purchase 338 unite 12.4 Total 58,55 34 u The Comoany uses a perpetual inventory system. For specific identification, ending inventory consists of 340 units, where 320 are from the January 30 puchase 5 are from the Janunry 20 puchase, and 15 are from beginning inventory Required: 1. Complete camparative income statements for the month of lanary far Laker Company far the foiar inventary methads Assume expenses are S1.950, and that the aooicable income tax rate is 40%. (Round your Intermediate celculetions to 2 decimal places.) For Month Ended January 31 Specific Wcighted ust of yuods sold Gross proit Expenscs Nel income ?Plev 2at 4 Next > O Type here to search 4:10 PM E 1/2018
Explanation / Answer
Working:
LAKER COMPANY Income statement for the month ended January 31 Specific Identification Weighted Average FIFO LIFO Sales 7650 7650 7650 7650 Cost of goods sold 4445 4455 4460 4440 Gros profit 3205 3195 3190 3210 Expenses 1950 1950 1950 1950 Income before taxes 1255 1245 1240 1260 Income Taxes (40%) 502 498 496 504 Net income 753 747 744 756
