k Suppose a division of Califomia Instruments Incorporated that sells computer microchips has these inventory records for January 2021: (Click the icon to view the inventory records.) The company's accounting records show 420 units were sold for revenue of $8,400. Operating expense for January was $2,200. Requirement 1. Prepare the company's January, multistep income statement. Calculate income using the LIFO, average-cost, and FIFO methods. Label the bottom line "Operating income." Round the average cost per unit to three decimal places and all other figures to whole-dollar amounts. Show your computations. Begin by preparing the income statement using LIFO, then average, and finally FIFO cost. California Instruments Incorporated Income Statement for Microchip Month Ended January 31, 2021 Requirements - Sales revenue Cost of goods sold Gross profit Operating expenses Operating income Data table LIFO Date Item Quantity Unit Cost Total Cost Jan 1 Beginning inventory 160 units $ 7 $ 1,120 6 Purchase 60 units 13 780 21 Purchase 200 units 14 2,800 27 Purchase 80 units 15 1,200 1. Prepare the company's January, multistep income statement. Calculate income using the LIFO, average-cost, and FIFO methods. Label the bottom line "Operating income." Round the average cost per unit to three decimal places and all other figures to whole-dollar amounts. Show your computations. 2. Suppose you are the financial vice president of California Instruments. Which inventory method will you use if your motive is to a. minimize income taxes? b. report the highest operating income? c. report operating income between the extremes of FIFO and LIFO? d. report inventory on the balance sheet at the most current cost? - X e. attain the best measure of net income for the income statement? State the reason for each of your answers. Print Done