Park Company reported the following March purchases and sales data for its only product.

Date

Activities

Units Acquired at Cost

Units Sold at Retail

Mar.

1

Beginning inventory

180

units

@ $7.60

=

$

1,368

Mar.

10

Sales

105

units

@$15.60

Mar.

20

Purchase

250

units

@ $6.60

=

1,650

Mar.

25

Sales

175

units

@$15.60

Mar.

30

Purchase

120

units

@ $5.60

=

672

Totals

550

units

$

3,690

280

units

Park uses a perpetual inventory system. For specific identification, ending inventory consists of 270 units, where 120 are from the March 30 purchase, 80 are from the March 20 purchase, and 70 are from beginning inventory.

1.

Complete comparative income statements for the month of March for Park Company for the four inventory methods. Assume expenses are $1,900, and that the applicable income tax rate is 30%.(Round per unit costs to three decimal places. Round your answers to the nearest dollar amounts. Input all amounts as positive values. Omit the "$" sign in your response.)

PARK COMPANY Income Statements For Month Ended March 31
	Specific Identification	Weighted Average	FIFO	LIFO
Sales	$	$	$	$
Cost of goods sold
Gross profit
Expenses
Income before taxes
Income tax expense
Net income	$	$	$	$

2.

Which method yields the highest net income?

	FIFO
	LIFO
	Weighted average
	Specific identification

3.

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

	Yes
	No

4.

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

	Specific identification
	Weighted average
	LIFO
	FIFO