Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. laker company reported the following january purch

Laker Company reported the following January purchases and sales data for its only product. ...

50.1K

Verified Solution

Question

Accounting

Laker Company reported the following January purchases and sales data for its only product.

Date Activities Units Acquired at Cost Units Sold at Retail
Jan. 1 Beginning inventory 300 units @ $7.60 = $ 2,280
Jan. 10 Sales 180 units @ $18.20
Jan. 20 Purchase 220 units @ $6.60 = 1,452
Jan. 25 Sales 160 units @ $18.20
Jan. 30 Purchase 340 units @ $6.10 = 2,074
Totals 860 units $ 5,806 340 units

Laker uses a periodic inventory system. For specific identification, ending inventory consists of 520 units, where 340 are from the January 30 purchase, 85 are from the January 20 purchase, and 95 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 $2,600, and that the applicable income tax rate is 40%. (Round your average cost per unit to 2 decimal places.)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Economics
1.2K views

According to Zakaria, democracy has not always fulfilled its promises. Discuss what this means identifying each...

Mechanical Engineering
1.2K views

What are main differences between the Finite Difference Method and Finite Elements Method? How are the boundary...

Basic Math
1.2K views

group hours 1.00 44.00 1.00 40.00 1.00 44.00 1.00 39.00 1.00 25.00 1.00 37.00 1.00 31.00 1.00 40.00 1.00 22.00 1.00 34.00 1.00 39.00 1.00 20.00 1.00 39.00 1.00 42.00 1.00 41.00 2.00 36.00 2.00 40.00 2.00 37.00 2.00 35.00 2.00 39.00 2.00 40.00 2.00 36.00 2.00 38.00 2.00 24.00 2.00 27.00 2.00 29.00 2.00 24.00 2.00 45.00 2.00 44.00 2.00 44.00 3.00 52.00 3.00 50.00 3.00 51.00 3.00 52.00 3.00 45.00 3.00 49.00 3.00 47.00 3.00 46.00 3.00 47.00 3.00 47.00 3.00 46.00 3.00 45.00 3.00 50.00 3.00 47.00 3.00 49.00 The senior class at a charter school specializing in the physical sciences surveyed students in three...

Physics
1.2K views

A ray of light travels through air and strikes the surface of a liquid at...

Physics
1.2K views

A simple pendulum in a stationary lift has time period T What would be the...

Basic Math
1.2K views

Sketch the logarithmic function h(x)=-4 log(x+2)+4 Find two points on the graph, and determine the...

Basic Math
1.2K views

The solution set to a system of dependent equations is given. Write three ordered triples...

Accounting
1.2K views

Entries for Selected Corporate Transactions Morrow Enterprises Inc. manufactures bathroom fixtures. Morrow Enterprises'...

Accounting
1.2K views

Pita Aigrais incorporated a business called Aigris Ltd and began trading as a hardware merchant...

Accounting
1.2K views

25-1 (Objecctive 25-1) What is meant by the term level of assurance? How does the...

Accounting
1.2K views

Break-Even Sales Under Present and Proposed Conditions Darby Company, operating at full capacity, sold 118,500...

Finance
1.2K views

The $340 selling price of a stereo is $40 more than 3 times the cost