exam 01 (7).pdf - 1 Laker Company reported the following January purchases and sales data for its only product Date Activities Jan 1Beginning inventory

# exam 01 (7).pdf - 1 Laker Company reported the following...

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1)Laker Company reported the following January purchases and sales data for its only product.DateActivitiesUnits Acquired at CostUnits Sold at RetailJan.1Beginning inventory140units@ \$6.00= \$840Jan. 10Sales100units@\$15Jan.20Purchase60units@ \$5.00=300Jan. 25Sales80units@\$15Jan.30Purchase180units@ \$4.50=810Totals380units\$ 1,950180unitsLaker uses a perpetual inventory system. For specific identification, ending inventory consists of200 units, where 180 are from the January 30 purchase, 5 are from the January 20 purchase, and15 are from beginning inventory.Complete comparative income statements for the month of January for Laker Company for thefour inventory methods. Assume expenses are \$1,250, and that the applicable income tax rate is40%.2)Hemming Co. reported the following current-year purchases and sales data for its onlyproduct.DateActivitiesUnits Acquired at CostUnits Sold at RetailJan.1Beginning inventory200units@ \$10= \$2,000Jan. 10Sales150units@\$40Mar.14Purchase350units@ \$15=5,250Mar. 15Sales300units@\$40July30Purchase450units@ \$20=9,000Oct.5Sales430units@\$40Oct.26Purchase100units@ \$25=2,500Totals1,100units\$ 18,750880unitsDetermine the costs assigned to ending inventory and to cost of goods sold using LIFO.Compute the gross margin for FIFO method.Compute the gross margin for LIFO method.
We were unable to transcribe this image Calculate the cost of goods sold under each inventory method as follows: FIFO Cost of Purchase Per unit price Per unit price Ending inventory Per unit price FIFO Units Total Units (axb) TotalUnits (axb) Total 1-Jan 10-Jan 20-Jan 6.00\$840.00 6.00S240.00 6.00S240.00 S5.00 S300.00 140 100 S6.00S600.00 40 40 60 60 5.00 S300.00 25-Jan 30-Jan TOTAL 40 S6.00 S240.00 S5.00 S200 40 20 5.00S100.00 \$5.00 \$100.00 4.50\$810.00 \$910.00 180 S4.50 \$810 180 1,040.00200 240 1,110.00180 LIFO Cost of goods sold Ending inventory Furchase Per unit price Per unit Total price Per unit Tota price LIFO Units Total Units (axb) (axb) (axb) 6.00 S840.00 6.00S240.00 6.00 S240 5.00 S300.00 140 10-Jan 20-Jan 100 S6.00S600.00 40 40 60 60 S5.00 S300.00 25-Jan 60 20 5.00 \$300. S6.00 S120 6.00 S120.00 \$6.00 \$120.00 4.50 \$810.00 20 30-Jan 180 S4.50 S810.00 180 \$1,020.00 200 TOTA 240 \$1,110.00 180 \$930.00 We were unable to transcribe this image