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[The following information applies to the questions displayed below.] Laker Company reported the following January purchases and sales data for its only product. The Company uses a periodic inventory system. For specific identification, ending inventory consists of 300 units, where 280 are from the January 30 purchase, 5 are from the January 20 purchase, and 15 are from beginning inventory.

Date		Activities	Units Acquired at Cost								Units sold at Retail
Jan.	1	Beginning inventory	190	units	@	$	7.00	=	$	1,330
Jan.	10	Sales										150	units	@	$	16.00
Jan.	20	Purchase	110	units	@	$	6.00	=		660
Jan.	25	Sales										130	units	@	$	16.00
Jan.	30	Purchase	280	units	@	$	5.50	=		1,540
		Totals	580	units					$	3,530		280	units

Required: 1. Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $1,750, and that the applicable income tax rate is 40%. (Round your average cost per unit to 2 decimal places.)

2. Which method yields the highest net income? multiple choice 1

• FIFO

• Specific identification

• Weighted average

• LIFO

3. Does net income using weighted average fall between that using FIFO and LIFO? multiple choice 2

• Yes

• No

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

multiple choice 3

• Weighted average

• LIFO

• FIFO

• Specific identification