Required information The following information applies to the questions displaye

Question

Required information The following information applies to the questions displayed below) Laker Company reported the following January purchases and sales data for Its anly product Units Acquired at CostUnits sold at Retail Jan. i Beginning inventory Jan. 10 5ales Jon. 20 Purchase an. 25 Sales Jon. 3e Purchase 175 units $10.0e $1,750 130 units @ ? 9.ee_ 1,178 258 units s5.32,125 135 units $19. 140 units$19. Totals 555 units 5,945 275 units The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 280 units, where 250 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 $1,600, and that the applicable income tax rate is 40%. (Round your Intermediate calculation$ to 2 decimal place Income Statements For Month Ended January 31 Specific Weighted FIFO LIFO Sales Cost of goods sold Gross profit Expenses Income belore taxes Income tax expans8 Net income Pre 12 of 16 Next >

Explanation / Answer

Total inventory available for sale during Jan Beginning + purchases = 175 + 380 = 555 units less: sold out = 275 Ending inventory = 280 Value of total available = $5045 Valuation of Ending inventory: Identification 250*8.5+5*9+25*10=$2420 Average 5045*280/555 = 2545.23 FIFO 250*8.5+30*9 = 2395 LIFO 175*10+105*9 = 2695 COGS: Identification 5045-2420= $2625 Average 5045-2545.23= 2499.77 FIFO 5045-2395= 2650 LIFO 5045-2695= 2350 COMPARATIVE INCOME STATEMENTS : SPECI IDENTI W AVERG FIFO LIFO Sales 5225 5225 5225 5225 COGS 2625 2499.77 2650 2350 GP 2600 2725.23 2575 2875 Expenses: 1600 1600 1600 1600 Income before tax 1000 1125.23 975 1275 IT expense 400 450.09 390 510 Net Income 600 675.14 585 765

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