Suppose a division of Utah 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 58,400. Operating expense for January was $1,000 Read the requirements. 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 othe figures to whole-dollar amounts. Show your computations. Begin by preparing the income statement using LIFO, then average, and finally FIFO cost. Utah Instruments Incorporated Income Statement for Microchip Month Ended January 31, 2021 LIFO Sales revenue Cost of goods sold Gross profit Operating expenses - X Data Table Operating income Date Item Jan 1 Beginning inventory Purchase 6 Quantity Unit Cost Total Cost 160 units $ 7 $ 1,120 BD units 13 780 200 units 14 2,800 80 units 15 1,200 21 Purchase Purchase 27 x Done Requirements 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 Utah 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? e. attain the best measure of net income for the income statement? State the reason for each of your answers