Question

In: Accounting

Required information Use the following information for the Exercises below. [The following information applies to the...

Required information

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 Units sold at Retail
Jan. 1 Beginning inventory 155 units @ $ 8.00 = $ 1,240
Jan. 10 Sales 115 units @ $ 17.00
Jan. 20 Purchase 90 units @ $ 7.00 = 630
Jan. 25 Sales 95 units @ $ 17.00
Jan. 30 Purchase 210 units @ $ 6.50 = 1,365
Totals 455 units $ 3,235 210 units


The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 245 units, where 210 are from the January 30 purchase, 5 are from the January 20 purchase, and 30 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. Assume expenses are $1,400 and that the applicable income tax rate is 40%. (Round your Intermediate calculations to 2 decimal places.)

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