450 81000 totals 102000 93000 5 laker company

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@$4.50=810.00Totals$1,020.00$930.00-----------------------------------------------------------------------------------------------------------------------------------5.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$1,950180units
The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 200 units, where 180 are from the January 30 purchase, 5 are from the January 20 purchase, and 15 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 $1,250, and that the applicable income tax rate is 40%.(Round your Intermediate calculations to 2 decimal places.)LAKER COMPANYIncome StatementsFor Month Ended January 31Specific WeightedIdentificationAverageFIFOLIFOSales$2,700 $2,700 $2,700 $2,700Cost of goods sold1,0251,0321,0401,020Gross profit1,6751,6681,6601,680Expenses1,2501,2501,2501,250Income before taxes425418410430Income tax expense170167164172Net income$255$251$246$2582.Which method yields the highest net income?
3.Does net income using weighted average fall between that using FIFO and LIFO?
4.
If costs were rising instead of falling, which method would yield the highest net income?

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