80.2K

Verified Solution

Link Copied!

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

170

units

@ $7.40

=

$

1,258

Jan.

10

Sales

100

units

@$15.40

Jan.

20

Purchase

240

units

@ $6.40

=

1,536

Jan.

25

Sales

165

units

@$15.40

Jan.

30

Purchase

110

units

@ $5.40

=

594

Totals

520

units

$

3,388

265

units

The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 255 units, where 110 are from the January 30 purchase, 80 are from the January 20 purchase, and 65 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 $1,800, and that the applicable income tax rate is 39%. (Do not round your Intermediate calculations.)

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

170

units

@ $7.40

=

$

1,258

Jan.

10

Sales

100

units

@$15.40

Jan.

20

Purchase

240

units

@ $6.40

=

1,536

Jan.

25

Sales

165

units

@$15.40

Jan.

30

Purchase

110

units

@ $5.40

=

594

Totals

520

units

$

3,388

265

units

The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 255 units, where 110 are from the January 30 purchase, 80 are from the January 20 purchase, and 65 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 $1,800, and that the applicable income tax rate is 39%. (Do not round your Intermediate calculations.)

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

170

units

@ $7.40

=

$

1,258

Jan.

10

Sales

100

units

@$15.40

Jan.

20

Purchase

240

units

@ $6.40

=

1,536

Jan.

25

Sales

165

units

@$15.40

Jan.

30

Purchase

110

units

@ $5.40

=

594

Totals

520

units

$

3,388

265

units

The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 255 units, where 110 are from the January 30 purchase, 80 are from the January 20 purchase, and 65 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 $1,800, and that the applicable income tax rate is 39%. (Do not round your Intermediate calculations.)

Answer & Explanation Solved by verified expert

See Answer