Use the following information for the Exercises below. [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 165 unitse $9.00 - $1,485 Units sold at Retail Jan. 1 Beginning inventory Jan. 10 Sales 125 units e $18.00 Jan. 20 Purchase 110 unitse $8.00 880 Jan. 25 Sales 125 units @ $18.00 Jan. 30 Purchase 230 unitse $7.50 = 1,725 Totals 505 units $4,090 250 units The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 255 units, 230 are from the January 30 purchase, 5 are from the January 20 purchase, and 20 are from beginning inventory. Exercise 5-4 Perpetual: Income effects of inventory methods LO A1 Required: 1. Complete comparative income statements for the month of January for Laker Company for the four inventory methods. expenses are $1,500 and that the applicable income tax rate is 40%. (Round your Intermediate calculations to 2 decima LAKER COMPANY Income Statements For Month Ended January 31 Weighted Specific Identification Average FIFO LIFO
Use the following information for the Exercises below. [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 165 unitse $9.00 - $1,485 Units sold at Retail Jan. 1 Beginning inventory Jan. 10 Sales 125 units e $18.00 Jan. 20 Purchase 110 unitse $8.00 880 Jan. 25 Sales 125 units @ $18.00 Jan. 30 Purchase 230 unitse $7.50 = 1,725 Totals 505 units $4,090 250 units The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 255 units, 230 are from the January 30 purchase, 5 are from the January 20 purchase, and 20 are from beginning inventory. Exercise 5-4 Perpetual: Income effects of inventory methods LO A1 Required: 1. Complete comparative income statements for the month of January for Laker Company for the four inventory methods. expenses are $1,500 and that the applicable income tax rate is 40%. (Round your Intermediate calculations to 2 decima LAKER COMPANY Income Statements For Month Ended January 31 Weighted Specific Identification Average FIFO LIFO
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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