Suppose a division of Vermont 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 310 units were sold for revenue of $4,960. 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. Labe 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. Vermont Instruments Incorporated Income Statement for Microchip Month Ended January 31, 2021 LIFO Average $ 4,960 $ 4,960 $ FIFO 4,960 Sales revenue 3,400 3,224 2.880 Cost of goods sold Gross profit 1,560 1,736 2,080 1,000 1,000 1,000 Operating expenses $ 560 $ 736 $ 1,080 Operating income Requirement 2. Suppose you are the financial vice president of Vermont Instruments Incorporated. Which inventory method will you use if your motive is to a. minimize income taxes? as Use FIFO to minimize income taxes. Operating income under this method is lowest when inventory unit costs are increasing they are in this case. (If inventory unit costs were going the opposite direction, income under LIFO would be lowest.) Data Table Date Item Quantity Unit Cost Total Cost Jan 1 140 units S 6 $ 840 Beginning inventory Purchase 6 60 units 12 720 21 Purchase 110 units 12 1,320 27 Purchase 40 units 19 760