Problem
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 @ $10.00 = $ 3,000 Jan. 10 Sales 165 units @$18.00 Jan. 20 Purchase 370 units @ $9.00 = 3,330 Jan. 25 Sales 295 units @$18.00 Jan. 30 Purchase 240 units @ $8.00 = 1,920 Totals 910 units $ 8,250 460 units The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 450 units, where 240 are from the January 30 purchase, 80 are from the January 20 purchase, and 130 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 $3,100, and that the applicable income tax rate is 30%.