CHAPTER 5 HOMEWORK Help Save & Exit Subn Check my work 5 Required information (T
ID: 2564955 • Letter: C
Question
CHAPTER 5 HOMEWORK Help Save & Exit Subn Check my work 5 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. Part 2 of 2 10 Beginning Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase 175 units$10.00-$1,750 130 units 9.00- 1,170 275 unitse 8.00-2,200 135 units $19.00 140 units $19.0o Totals 580 units $5,120 275 unite Print four inventory methods. Assume expenses are $1.600 and that the unit to 2 decimal places.) comparative income statements for the month of January for Laker Company using the periodic inventory system for the applicable income tax rate is 40%. (Round your average cost per Income Statements For Month Ended January 31 Specific Prey 5 of t3 Next >Explanation / Answer
1)Total unit sold :275
Sales revenue:[135*19]+[140*19] = 5225
Under FIFO,units acquired firs are sold first so cost of goods sold:[175*10]+[(275-175 beginning)*9] jan20 purchase
= 1750+ 900
= 2650
under LIFO, UNits acquired last are sold first,cost of goods sold :275*8=2200
weighted average cost per unit =cost of goods available for sale/units available for sale
= 5120/580 =$ 8.83 per unit
for specific identificatiion,please provide details how much invenorty are sold out of which purchase or beginning
Income statement FIFO LIFO Weighted average sales revenue 5225 5225 5225 less:cost of goods sold -2650 -2200 -2428.25 [275*8.83] gross margin 2575 3025 2796.75 less:other cost -1600 -1600 -1600 Income before tax 975 1425 1196.75 less:tax -390 [975*.40] -570 [1425*.40] -478.7 net income 585 855 718.05