In: Accounting
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.)