Laker Company report

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Laker Company report Laker Company reported the following January purchases and sales data for its only product. Date Jan. 1 Beginning inventory $840 Jan. 10 Sales 100 units @ $15.00 = $1,500 Jan... . 20 Purchase 300 Jan. 25 Sales 80 units @ $15.00 = $1,200 Jan. 30 Purchase 810 380 units $1,950 180 units $2,700 60 units @ $5.00 = 180 units @ $4.50 = Activities Units Acquired at Cost Units sold at Retail 140 units @ $6.00 = Laker uses a perpetual inventory system. 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%. 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. Exercise  5-­‐4  5-2 Date Jan. 1 Beginning inventory $840 Jan. 10 Sales 100 units @ $15.00 = $1,500 Jan. 20 Purchase 300 Jan. 25 Sales 80 units @ $15.00 = $1,200 Jan. 30 Purchase 810 380 units $1,950 180 units $2,700 60 units @ $5.00 = 180 units @ $4.50 = 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. Activities Units Acquired at Cost Units sold at Retail 140 units @ $6.00 = Date Activity Units Unit Cost Units Sold Unit Cost COGS Ending Inventory Units Cost per Unit Ending Inventory Cost Jan. 1 Beg. Inv. 140 $6.00 125 $6.00 $750 15 $6.00 $90 Jan. 20 Purchase 60 $5.00 55 $5.00 275 5 $5.00 25 Jan. 30 Purchase 180 $4.50 0 $4.50 0 180 $4.50 810 $1,025 $925 Specific identification. Available for Sale Cost of Goods Sold Ending Inventory Specific Weighted Identification Average FIFO LIFO Sales $2,700 Cost of goods sold 1,025 Gross profit 1,675 Operating expenses 1,250 Income before tax 425 Income tax expense (40%) 170 Net income $255 Laker Company reported the following January purchases and sales data for its only product. Date Jan. 1 Beginning inventory $840 Jan. 10 Sales 100 units @ $15.00 = $1,500 Jan. 20 Purchase 300 Jan. 25 Sales 80 units @ $15.00 = $1,200 Jan. 30 Purchase 810 380 units $1,950 180 units $2,700 60 units @ $5.00 = 180 units @ $4.50 = Activities Units Acquired at Cost Units sold at Retail 140 units @ $6.00 = Laker uses a perpetual inventory system. 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%. 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. Exercise  5-­‐4  5-2 Date Jan. 1 Beginning inventory $840 Jan. 10 Sales 100 units @ $15.00 = $1,500 Jan. 20 Purchase 300 Jan. 25 Sales 80 units @ $15.00 = $1,200 Jan. 30 Purchase 810 380 units $1,950 180 units $2,700 60 units @ $5.00 = 180 units @ $4.50 = 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. Activities Units Acquired at Cost Units sold at Retail 140 units @ $6.00 = Date Activity Units Unit Cost Units Sold Unit Cost COGS Ending Inventory Units Cost per Unit Ending Inventory Cost Jan. 1 Beg. Inv. 140 $6.00 125 $6.00 $750 15 $6.00 $90 Jan. 20 Purchase 60 $5.00 55 $5.00 275 5 $5.00 25 Jan. 30 Purchase 180 $4.50 0 $4.50 0 180 $4.50 810 $1,025 $925 Specific identification. Available for Sale Cost of Goods Sold Ending Inventory Specific Weighted Identification Average FIFO LIFO Sales $2,700 Cost of goods sold 1,025 Gross profit 1,675 Operating expenses 1,250 Income before tax 425 Income tax expense (40%) 170 Net income $255 [Show More]

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