Question

Required information

[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	160	units	@	$	8.50	=	$	1,360
Jan.	10		Sales										120	units	@	$	17.50
Jan.	20		Purchase	100	units	@	$	7.50	=		750
Jan.	25		Sales										120	units	@	$	17.50
Jan.	30		Purchase	220	units	@	$	7.00	=		1,540
			Totals	480	units					$	3,650		240	units

The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 240 units, where 220 are from the January 30 purchase, 5 are from the January 20 purchase, and 15 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 $1,450, and that the applicable income tax rate is 40%. (Round your Intermediate calculations to 2 decimal places.)

	LAKER COMPANY Income Statements For Month Ended January 31 Specific Weighted Identification Average FIFO LIFO Sales $4,200 $4,200 $4,200 $4,200 Cost of goods sold 1,945 1,960 1,940 Gross profit 2,255 4,200 2,240 2,260 Expenses 1,450 1,450 1,450 1,450 Income before taxes 805 2,750 790 810 Income tax expense 322 316 324 Net income $483 $2,420 $474 $486

I need the weighted average!!!!!

Answer 1

	W Avg.	Purchases			Cost of Goods Sold			Ending Balance
Date	Activity	Units	Unit Price	Amount	Units	Unit Price	Amount	Units	Unit Price	Amount
Jan-01	Beginning Inventory							160	$         8.50	$       1,360
Jan-10	Sales				120	$         8.50	$          1,020	40	$         8.50	$           340
Jan-20	Purchase	100	$             7.50	$               750				40	$         8.50	$           340
								100	$         7.50	$           750
								140	$         7.79	$       1,090
Jan-25	Sales				120	$         7.79	$             935	20	$         7.75	$           155
Jan-30	Purchase	220	$             7.00	$            1,540				20	$         7.75	$           155
								220	$         7.00	$       1,540
	Total	320		$            2,290	240		$         1,955	240	$         7.06	$       1,695

	Weighted
	Average
Sales	$            4,200
Cost of goods sold	$            1,955
Gross profit	$            2,245
Expenses	$            1,450
Income before taxes	$               795
Income tax expense	$               318
Net income	$               477