Question

# Laker Company reported the following January purchases and sales data for its only product. Date Activities...

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 185 units @ \$ 11.00 = \$ 2,035 Jan. 10 Sales 145 units @ \$ 20.00 Jan. 20 Purchase 100 units @ \$ 10.00 = 1,000 Jan. 25 Sales 125 units @ \$ 20.00 Jan. 30 Purchase 270 units @ \$ 9.50 = 2,565 Totals 555 units \$ 5,600 270 units

The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 285 units, where 270 are from the January 30 purchase, 5 are from the January 20 purchase, and 10 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 \$1,700, and that the applicable income tax rate is 40%. (Round your Intermediate calculations to 2 decimal places.)

Calculate cost of goods sold under Four method :

 FIFO LIFO Weighted average Specific indentification Cost of goods sold (185*11+85*10)=2885 (145*11+100*10+25*11)=2870 (145*11+10.29*125)=2881 (95*10+175*11)=2875

1. Complete comparative income statements for the month of January for Laker Company for the four inventory methods.

 FIFO LIFO Weighted average Specific identification Sales 5400 5400 5400 5400 Cost of goods sold (2885) (2870) (2881) (2875) Gross profit 2515 2530 2519 2525 Expenses (1700) (1700) (1700) (1700) Income before tax 815 830 819 825 Taxes (326) (332) (328) (330) Net income 489 498 491 495