Question

[The following information applies to the questions displayed below.] Laker Company reported the following January purchases and sales data for its only product. Units Acquired at Cost 205 units@ $13.00 = $2,665 Units sold at Retail 165 units @ $22.00 Date Activities Jan. 1 Beginning inventory Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase Totals 140 units@ $12.00 = 1,680 145 units @ $22.00 310 units @ $11.50 = 655 units 3,565 $ 7,910 310 units The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 345 units, where 310 are from the January 30 purchase, 5 are from the January 20 purchase, and 30 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 $1,900 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 L IFO 0 0 0 Sales Cost of goods sold Gross profit Expenses Income before taxes Income tax expense Net income 0 0 0 0 $ 0 $ 0 $ 0 $ 0

Answer 1

Income statements

For month ended January 31

	Specific identification	Weighted average	FIFO	LIFO
Sales	310*22 = 6820	6820	6820	6820
Cost of goods sold	7910-4015 = 3895	1772+2145 = 3917	3925	3890
gross profit	2925	2903	2895	2930
Expenses	1900	1900	1900	1900
Income before taxes	1025	1003	995	1030
Income tax expense	410	401	398	412
Net income	615	602	597	618