Required information

[The following information applies to the questions displayed below.] 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	225	units	@	$	15.00	=	$	3,375
Jan.	10	Sales										175	units	@	$	24.00
Jan.	20	Purchase	180	units	@	$	14.00	=		2,520
Jan.	25	Sales										210	units	@	$	24.00
Jan.	30	Purchase	385	units	@	$	13.00	=		5,005
		Totals	790	units					$	10,900		385	units

Required: 1. Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $2,100, and that the applicable income tax rate is 40%. (Round your average cost per unit to 2 decimal places.)

FORMAT THE CHART PROPERLY !!

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?

• No

• Yes

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

• FIFO

• Specific identification

• LIFO

• Weighted average