Laker Company reported the following January purchases and sales data for its only product. The Company...
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Laker Company reported the following January purchases and sales data for its only product. The Company uses a periodic inventory system. For specific identification, ending inventory consists of 415 units, where 385 are from the January 30 purchase, 5 are from the January 20 purchase, and 25 are from beginning inventory. Units sold at Retail Date Activities Jan. 1 Beginning inventory Jan. 18 Sales Units Acquired at Cost 235 units@ $16.00-$ 3,760 185 units@ $25.00 Jan. 20 Purchase 180 units@ $15.00- 2,700 Jan. 25 Sales 200 units@ $25.00 Jan. 30 Purchase 385 units@ $14.00- 5,390 $11,850 Totals 800 units 385 units Required 1. Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assum expenses are $2,200, and that the applicable income tax rate is 40% (Round your average cost per unit to 2 decimal places.) LAKER COMPANY Income Statements For Month Ended January 31 Specific Weighted Identification Average FIFO LIFO Sales 9.625 9,625 9.625 Cost of goods sold Gross profit 9,625 9,625 9,625 2,200 Expenses 2.200 2.200 Income before taxes 7.425 7.425 Income tax expense Net income 7.425 S 7.425 $ S S S 9,625 2,200 7.425 Laker Company reported the following January purchases and sales data for its only product. The Company uses a periodic inventory system. For specific identification, ending inventory consists of 415 units, where 385 are from the January 30 purchase, 5 are from the January 20 purchase, and 25 are from beginning inventory. Units sold at Retail Date Activities Jan. 1 Beginning inventory Jan. 18 Sales Units Acquired at Cost 235 units@ $16.00-$ 3,760 185 units@ $25.00 Jan. 20 Purchase 180 units@ $15.00- 2,700 Jan. 25 Sales 200 units@ $25.00 Jan. 30 Purchase 385 units@ $14.00- 5,390 $11,850 Totals 800 units 385 units Required 1. Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assum expenses are $2,200, and that the applicable income tax rate is 40% (Round your average cost per unit to 2 decimal places.) LAKER COMPANY Income Statements For Month Ended January 31 Specific Weighted Identification Average FIFO LIFO Sales 9.625 9,625 9.625 Cost of goods sold Gross profit 9,625 9,625 9,625 2,200 Expenses 2.200 2.200 Income before taxes 7.425 7.425 Income tax expense Net income 7.425 S 7.425 $ S S S 9,625 2,200 7.425
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