Question

Complete the Income Statement for Laker Company

Laker Company reported the following January purchases and sales data for its only product. Units sold at Retail Units Acquired at Cost 190 units@ $7.00 - $1,330 150 units @ $16.00 Date Activities Jan. 1 Beginning inventory Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase 110 units@ $6.00 = 660 130 units @ $16.00 280 units@ $5.50 - 580 units 1,540 $3,530 Totals 280 units The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 300 units, where 280 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 $1,750 and that the applicable income tax rate is 40%. (Round your Intermediate calculations to 2 decimal places.) LAKER COMPANY Income Statements For Month Ended January 31 Specific Weighted Identification Average FIFO LIFO

Answer 1

Anneer A for Completing the valyes to be filled in name statergent ! We have to eqrelate the most important figure ie cost of goods sold of inventory under different methods Cost of goods soll Cost of Goods sold is the total cost of goods sold by the entity to the cestomers. It is valued at cost. It is calcellebel_but different ways of Wpl4qfton method of iqventovy via زن والم کو Lal Specific Identitleqton Method In specit. Identifiqhon method, there is a complete in lovm ghen of goods which are sold from the particeller date of purchare slot. It is very essentily method of valuation inuentovjes and cast of Goods sold as it mg19f9los complete seconds of inventory In the question, we have given. ending Inventory. data of spectfic vienu figlion method, such igventovy unb on hand will be relucted from purch que slot units to determine the units sold and mytiplied by respective purchase rate. - cast of Gools Sold under Specific Identification Method [[1280 - 280) units X $5.507 + 1 [0110 -5 ) 49115 X $ 6.00] + I [1go - 15 units X $ 7.00] V : 0 t 630+ 1225 $1855

162) Weighted Avenge_methed Under Weighted average Ajce method Jqueqtory is_Valk at weighted quesage mice of gools Weighted Average Price 1 Weighted Price Average a = o Total cost of Goods Available for sale Total No. of unlis Available for sale late I fortjculars L Purchases I Cast of Goods soft Ending Inventory Init/Rile AM1.8) | units late Agt & unita Kyle | AME Job L opening Bilo 1190 / 7 / 1930 Jan. Jo sples 150 l l loso407280 Jan. 20 Purchairs 1110 15.660 1,50|6.26 940 399.15 | Sples | 130 | 6.261 814 120 16201 126 Ign, so / Purchase /280 15.50 1540 T L 300 5.551666 TT T Ti 1864 3. FI fo methed (first in first out) _Infifo Method the inventory which comes fyysit in stores will be toll fost In the question, company sold 280 units for January. As per FIFO method, company will soll first begining inventory full lot of 196 unit and partial slot purchase will be sold hom Jan. 20 pycharel i lest of Gools = 190 units X $ 7.00 = 1300 soll under FIFO + go yoits X & 6.00 = 540 1870 -

(4) Liro Methol (last in first out) In fast in fullt oyt method, inventory whichomci last should be sold fist Date Portiglons Purchases lunits Ihre l amb 4 Cost of Good lading Spegleny Units like Ami Tonic eye Anl Jan-1 Opening eqhace 10090 Jan. 1o Sales 1507 kho 4007 aro Jan .2 Purchases 1110 16 660 Jan 2s sales 10 107140 20 + 140 Jag jo Purlhge 280 5.50 1540 14° 200 12.80 1590 1540 Total cost of Goods soll unser Lzfo 1950 I comparative Income Skytement for the month of J4 94994 Inoms Stargat L _Income Statenscge shows the $1990c1120yll of the entity 19 the form of income or loss. Inome / lossis calulpted by_levenyes_less. 411.casts mais de aberta amb una active and care se inicio

LAKER COMPANY Income Statements __for the year ended / mhath ented 1994973). Specific Weighled Identifiqueol Average SJ for Lffo Sales Cost of Goods sold L Aross profil Expenses Income Before TaxeT Income Tax Expenses Net Income 4480 (1855) 2625 (1950) 875 ( 350) 4480 (1864) 2616 (1750) 866 (346) 59.0 4480 (1870) 2610 (1750) 4480 (1950) 2050 (1750) 860 880 ( 344) 516 (399) 508 525 1 Waking Notes 0 sales _ Sales __ (15049115 x $15) + (130 yojis x $ 169 $(2400 + 2080) : +4980_ frcome Iqx Explaje Income Taxis alcolated on the home before _taxes_multiplied by the 696e_of_income fyx