The following information applies to the questions displayed below.] 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 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 340 units @ $ 12.00 = 4,080 Totals 700 units $ 8,790 340 units Exercise 5-6A Periodic: Income effects of inventory methods LO A1, P3 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 average cost per unit to 2 decimal places.)
The following information applies to the questions displayed below.] 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 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 340 units @ $ 12.00 = 4,080 Totals 700 units $ 8,790 340 units Exercise 5-6A Periodic: Income effects of inventory methods LO A1, P3 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 average cost per unit to 2 decimal places.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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[The following information applies to the questions displayed below.]
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 | 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 | 340 | units | @ | $ | 12.00 | = | 4,080 | ||||||||
| Totals | 700 | units | $ | 8,790 | 340 | units | |||||||||||
Exercise 5-6A Periodic: Income effects of inventory methods LO A1, P3
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 average cost per unit to 2 decimal places.)
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Step 1 Introduction
VIEWStep 2 Computation of cost of goods sold by First in First out
VIEWStep 3 Computation of cost of goods sold by Last in First out
VIEWStep 4 Computation of cost of goods sold by weighted average method
VIEWStep 5 Computation of sale price
VIEWStep 6 Income statement by different method
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