Use the following information for the Exercises below. [The following information applies to the questions displayed below.] 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 180 units @ $ 10.50 = $ 1,890 Jan. 10 Sales 140 units @ $ 19.50 Jan. 20 Purchase 110 units @ $ 9.50 = 1,045 Jan. 25 Sales 130 units @ $ 19.50 Jan. 30 Purchase 260 units @ $ 9.00 = 2,340 Totals 550 units $ 5,275 270 units The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 280 units, where 260 are from the January 30 purchase, 5 are from the January 20 purchase, and 15 are from beginning inventory. rev: 03_14_2019_QC_CS-162819 Exercise 5-4 Perpetual: Income effects of inventory methods LO A1 Required: 1. Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $1,650, and that the applicable income tax rate is 40%. (Round your Intermediate calculations to 2 decimal places.)
Solution 1:
Computation of ending inventory COGS under FIFO - Laker Company | ||||||||||||
Date | Beginning Inventory | Purchase | Cost of Goods Sold | Ending Inventory | ||||||||
Qty | Rate | Amount | Qty | Rate | Amount | Qty | Rate | Amount | Qty | Rate | Amount | |
1-Jan | 180 | $10.50 | $1,890.00 | 0 | $0.00 | $0.00 | 0 | $0.00 | $0.00 | 180 | $10.50 | $1,890.00 |
10-Jan | 180 | $10.50 | $1,890.00 | 0 | $0.00 | $0.00 | 140 | $10.50 | $1,470.00 | 40 | $10.50 | $420.00 |
20-Jan | 40 | $10.50 | $420.00 | 110 | $9.50 | $1,045.00 | 0 | $0.00 | $0.00 | 40 | $10.50 | $420.00 |
110 | $9.50 | $1,045.00 | ||||||||||
25-Jan | 40 | $10.50 | $420.00 | 0 | $0.00 | $0.00 | 40 | $10.50 | $420.00 | 20 | $9.50 | $190.00 |
110 | $9.50 | $1,045.00 | 90 | $9.50 | $855.00 | |||||||
30-Jan | 20 | $9.50 | $190.00 | 260 | $9.00 | $2,340.00 | 0 | $0.00 | $0.00 | 20 | $9.50 | $190.00 |
260 | $9.00 | $2,340.00 | ||||||||||
Total | 270 | $2,745.00 | 280 | $2,530.00 |
Computation of ending inventory COGS under LIFO - Laker Company | ||||||||||||
Date | Beginning Inventory | Purchase | Cost of Goods Sold | Ending Inventory | ||||||||
Qty | Rate | Amount | Qty | Rate | Amount | Qty | Rate | Amount | Qty | Rate | Amount | |
1-Jan | 180 | $10.50 | $1,890.00 | 0 | $0.00 | $0.00 | 0 | $0.00 | $0.00 | 180 | $10.50 | $1,890.00 |
10-Jan | 180 | $10.50 | $1,890.00 | 0 | $0.00 | $0.00 | 140 | $10.50 | $1,470.00 | 40 | $10.50 | $420.00 |
20-Jan | 40 | $10.50 | $420.00 | 110 | $9.50 | $1,045.00 | 0 | $0.00 | $0.00 | 40 | $10.50 | $420.00 |
110 | $9.50 | $1,045.00 | ||||||||||
25-Jan | 40 | $10.50 | $420.00 | 0 | $0.00 | $0.00 | 110 | $9.50 | $1,045.00 | 20 | $10.50 | $210.00 |
110 | $9.50 | $1,045.00 | 20 | $10.50 | $210.00 | |||||||
30-Jan | 20 | $10.50 | $210.00 | 260 | $9.00 | $2,340.00 | 0 | $0.00 | $0.00 | 20 | $10.50 | $210.00 |
260 | $9.00 | $2,340.00 | ||||||||||
Total | 270 | $2,725.00 | 280 | $2,550.00 |
Computation of ending inventory COGS under Weighted Average Cost - Laker Company | ||||||||||||
Date | Beginning Inventory | Purchase | Cost of Goods Sold | Ending Inventory | ||||||||
Qty | Rate | Amount | Qty | Rate | Amount | Qty | Rate | Amount | Qty | Rate | Amount | |
1-Jan | 180 | $10.50 | $1,890 | 0 | $0.00 | $0 | 0 | $0.00 | $0 | 180 | $10.50 | $1,890 |
10-Jan | 180 | $10.50 | $1,890 | 0 | $0.00 | $0 | 140 | $10.50 | $1,470 | 40 | $10.50 | $420 |
20-Jan | 40 | $10.50 | $420 | 110 | $9.50 | $1,045 | 0 | $0.00 | $0 | 150 | $9.77 | $1,465 |
25-Jan | 150 | $9.77 | $1,465 | 0 | $0.00 | $0 | 130 | $9.77 | $1,270 | 20 | $9.77 | $195 |
25-Mar | 20 | $9.77 | $195 | 260 | $9.00 | $2,340 | 0 | $0.00 | $0 | 280 | $9.05 | $2,535 |
Total | 270 | $2,740 | 280 | $2,535 |
Computation of COGS and ending inventory - Specific identification | |||||||||
Particulars | Cost of goods available for sale | Cost of goods sold | Ending Inventory | ||||||
Nos of units | Unit Cost | Cost of goods available for sale | Nos of units sold | Unit Cost | Cost of goods sold | Nos of units in ending inventory | Unit Cost | Ending inventory | |
Beginning inventory | 180 | $10.50 | $1,890 | 165 | $10.50 | $1,732.50 | 15 | $10.50 | $157.50 |
Purchases: | |||||||||
20-Jan | 110 | $9.50 | $1,045 | 105 | $9.50 | $997.50 | 5 | $9.50 | $47.50 |
30-Jan | 260 | $9.00 | $2,340 | 0 | $9.00 | $0.00 | 260 | $9.00 | $2,340.00 |
Total | 550 | $5,275 | 270 | $2,730.00 | 280 | $2,545.00 |
Income Statement - Laker Company | ||||
Particulars | Specific identification | Weighted Average | FIFO | LIFO |
Sales | $5,265 | $5,265 | $5,265 | $5,265 |
Cost of goods sold | $2,730 | $2,740 | $2,745 | $2,725 |
Gross Profit (Sales - COGS) | $2,535 | $2,525 | $2,520 | $2,540 |
Expenses | $1,650 | $1,650 | $1,650 | $1,650 |
Income before taxes | $885 | $875 | $870 | $890 |
Income tax expense (40%) | $354 | $350 | $348 | $356 |
Net Income | $531 | $525 | $522 | $534 |
Use the following information for the Exercises below. [The following information applies to the questions displayed...
Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below.] 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 180 units @ $ 10.50 = $ 1,890 Jan. 10 Sales 140 units @ $ 19.50 Jan. 20 Purchase 110 units @ $ 9.50 = 1,045 Jan. 25 Sales 130 units @ $...
You received partial credit in the previous attempt. Check my work Required information Use the following information for the Exercises below. The following information applies to the questions displayed below.) Laker Company reported the following January purchases and sales data for its only product. Units sold at Retail Units Acquired at Cost 180 units $10.50 - $1,890 140 units @ $19.50 Date Activities Jan. 1 Beginning inventory Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase 110...
Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below.] 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 240 units @ $ 16.50 = $ 3,960 Jan. 10 Sales 190 units @ $ 25.50 Jan. 20 Purchase 170 units @ $ 15.50 = 2,635 Jan. 25 Sales 190 units @ $...
Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below.] 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 145 units @ $ 7.00 = $ 1,015 Jan. 10 Sales 105 units @ $ 16.00 Jan. 20 Purchase 70 units @ $ 6.00 = 420 Jan. 25 Sales 85 units @ $...
Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below.] 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 240 units @ $ 16.50 = $ 3,960 Jan. 10 Sales 190 units @ $ 25.50 Jan. 20 Purchase 170 units @ $ 15.50 = 2,635 Jan. 25 Sales 190 units @ $...
Required information [The following information applies to the questions displayed below.] 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 195 units @ $ 12.00 = $ 2,340 Jan. 10 Sales 155 units @ $ 21.00 Jan. 20 Purchase 120 units @ $ 11.00 = 1,320 Jan. 25 Sales 135 units @ $ 21.00 Jan. 30 Purchase 290 units @ $...
Required Information The following Information applies to the questions displayed below.) Laker Company reported the following January purchases and sales data for its only product. Date Activities Jan. 1 Beginning inventory Jan. 10 Sales Jan. 2e Purchase Jan. 25 Sales Jan. 30 Purchase Totals Units Acquired at Cost Units sold at Retail 180 units @ $10.50 = $1,898 140 units @ $19.50 110 units @ $ 9.50 = 1,845 130 units@ $19.50 278 units @ $ 9.00 = 2,430 568...
Required information Use the following information for the Exercises below. The following information applies to the questions displayed below) 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 100 units @ $10.50 - $1,890 n. le Sales 140 nits $19.50 Jan. 20 Purchase 110 units $ 9.50 1,045 Jan. 25 Sales 130 units @ $19.se Jan. 30 Purchase 260 units $9.00...
* ROJADIRECTA in English Ch 05:5-3 Stoped Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below) Laker Company reported the following January purchases and sales data for its only product Ativities Unita Moored at Coat Units old at Retail Jan. 1 beginning inventory 180 unitat $10.50 - $1.890 Jan. 10 Sales 240 319.50 Jan. 20 Purchase - 1,045 Jan. 25 Sales Jan. 30 Purchase 200 unitats 9.00 - 2,345 550...
Use the following information for the Exercises below. [The following information applies to the questions displayed below.] 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 210 units @ $ 13.50 = $ 2,835 Jan. 10 Sales 160 units @ $ 22.50 Jan. 20 Purchase 150 units @ $ 12.50 = 1,875 Jan. 25 Sales 180 units @ $ 22.50 Jan....