The Butters Company Uses the FIFO Perpetual Inventory System The Selling Price Per Unit Is $1,000

question 63

Essay

The Butters Company uses the FIFO perpetual inventory system. The company has the following data available for the month of January:
$$\begin{array} { l l l l } \text { Date } & \text { Transaction } & \text { Units } & \text { Unit Cost } \\\text { Jan. 1 } & \text { Beginning inventory } & 100 & \$ 100 \\\text { Jan. 9 } & \text { Purchase } & 300 & \$ 140 \\\text { Jan. 10 } & \text { Sale } & 200 & \\\text { Jan. 15 } & \text { Purchase } & 400 & \$ 160 \\\text { Jan. 18 } & \text { Sale } & 300 & \\\text { Jan. 24 } & \text { Purchase } & 100 & \$ 200 \\\text { Jan. 30 } & \text { Sale } & 10 &\end{array}$$
The selling price per unit is $1,000. Selling and administrative expenses for the month total $100,000. Interest expense for the month is $10,000. The tax rate is 30%.
Required:
Prepare the income statement for the month ending January 31, 2019 using a multiple-step format.

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