Laker uses a perpetual inventory system for specific

Assignment Help Accounting Basics

Reference no: EM13577808

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.

Beginning inventory

220

units

@ $8.40

1,848

Jan.

Sales

125

units

@$16.40

Jan.

Purchase

290

units

@ $7.40

2,146

Jan.

Sales

215

units

@$16.40

Jan.

Purchase

160

units

@ $6.40

1,024

Totals

670

units

5,018

340

units

Laker uses a perpetual inventory system. For specific identification, ending inventory consists of 330 units, where 160 are from the January 30 purchase, 80 are from the January 20 purchase, and 90 are from beginning inventory.

1.	Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $2,300, and that the applicable income tax rate is 35%. (Do not round your Intermediate calculations.)

Which method yields the highest net income?

	Specific identification
	LIFO
	Weighted average
	FIFO

Does net income using weighted average fall between that using FIFO and LIFO?

	Yes
	No

If costs were rising instead of falling, which method would yield the highest net income?

	Weighted average
	Specific identification
	FIFO
	LIFO

Reference no: EM13577808

Questions Cloud

Identify the circumstances in which the median rather than : identify the circumstances in which the median rather than the mean is the preferred measure of central

Objectives back to top the objective of this project is to : objectives back to top the objective of this project is to give the students an opportunity to learn how to develop

That old equipment for producing subassemblies is worn out : that old equipment for producing subassemblies is worn out said paul taylor president of timkin company. we need to

Assume that the probability a child is a boy is 051 and : assume that the probability a child is a boy is 0.51 and that every childs sex born into a family is independent. what

Laker uses a perpetual inventory system for specific : laker company reported the following january purchases and sales data for its only product. dateactivitiesunits

What would be the cost equation if the high-low method is : the armer company is accumulating data to be used in preparing its annual profit plan for the coming year. the cost

Csemix audit report hi please find the attachment files : hi please find the attachment files. make paraphrase for csemix report file using information from coder a amp coder b

A company had the following purchases during the current : a company had the following purchases during the current year march 9 units at 130 april 11 units at 100 july 13 units

The following data are results from a study you recently : question 1 the following data are results from a study you recently completed. calculate the correlation coefficient

User Account

All Pages