Laker Company reported the following January purchases and sales data for its only product. Units Acquired at Cost 145 units@ $7.00 = $1,015 70 units@ $6.00 = 420 190 units@ $5.50= 1,045 405 units $2,480 Units sold at Retail 105 units @ $16.00 85 units@ $16.00 190 units Date Activities Jan. 1 Beginning inventory Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase Totals The Company uses a perpetual inventory system. For specific Identification, ending Inventory consists of 215 units, where 190 are from the January 30 purchase, 5 are from the January 20 purchase, and 20 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 $1,300 and that the applicable income tax rate is 40%. (Round your Intermediate calculations to 2 decimal places.) Sales Cost of goods sold Gross profit Expenses Income before taxes Income tax expense Net income LAKER COMPANY Income Statements $ FMonth Ended January 31 Weighted Average Specific Identification 0 0 0 $ 0 0 0 $ FIFO 0 0 0 $ LIFO 0 0 0
Laker Company reported the following January purchases and sales data for its only product. Units Acquired at Cost 145 units@ $7.00 = $1,015 70 units@ $6.00 = 420 190 units@ $5.50= 1,045 405 units $2,480 Units sold at Retail 105 units @ $16.00 85 units@ $16.00 190 units Date Activities Jan. 1 Beginning inventory Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase Totals The Company uses a perpetual inventory system. For specific Identification, ending Inventory consists of 215 units, where 190 are from the January 30 purchase, 5 are from the January 20 purchase, and 20 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 $1,300 and that the applicable income tax rate is 40%. (Round your Intermediate calculations to 2 decimal places.) Sales Cost of goods sold Gross profit Expenses Income before taxes Income tax expense Net income LAKER COMPANY Income Statements $ FMonth Ended January 31 Weighted Average Specific Identification 0 0 0 $ 0 0 0 $ FIFO 0 0 0 $ LIFO 0 0 0
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 67APSA: Inventory Costing Methods Andersons Department Store has the following data for inventory,...
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Step 1: Introduction
VIEWStep 2: Computation of cost of goods sold and ending inventory using specific identification:
VIEWStep 3: Computation of cost of goods sold and ending inventory using weighted average:
VIEWStep 4: Computation of cost of goods sold and ending inventory using FIFO:
VIEWStep 5: Computation of cost of goods sold and ending inventory using LIFO:
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