Question

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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	170	units	@	$	9.50	=	$	1,615
Jan.	10		Sales										130	units	@	$	18.50
Jan.	20		Purchase	120	units	@	$	8.50	=		1,020
Jan.	25		Sales										130	units	@	$	18.50
Jan.	30		Purchase	240	units	@	$	8.00	=		1,920
			Totals	530	units					$	4,555		260	units

The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 270 units, where 240 are from the January 30 purchase, 5 are from the January 20 purchase, and 25 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 $1,550 and that the applicable income tax rate is 40%. (Round your Intermediate calculations to 2 decimal places.)

Answer 1

Sales (260 *$18.50)