Suppose a division of Washington Instruments Incorporated that sells computer microchips has these inventory records for January 2018: (Click the icon to view the inventory records.) The company's accounting records show 400 units were sold for revenue of $10,000. Operating expense for January was $2,200. 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 other figures to whole-dollar amounts. Show your computations. Begin by preparing the income statement using LIFO, then average, and finally FIFO cost. Washington Instruments Incorporated Income Statement for Microchip Month Ended January 31, 2018 LIFO Average Sales revenue Cost of goods sold Gross profit Operating expenses Operating income Requirement 2. Suppose you are the financial vice president of Washington Instruments Incorporated. Which inventory method will you use if your motive is to a. minimize income taxes? V, as they are in this case. (If inventory unit costs were going the opposite direction, income Use under to minimize income taxes. Operating income under this method is lowest when inventory unit costs are would be lowest.) a. minimize income taxes? Use , as they are in this case. (If inventory unit costs were going the opposite direction, income V to minimize income taxes. Operating income under this method is lowest when inventory unit costs are would be lowest.) under b. report the highest operating income? Use V to report the highest operating income. Income under this method is highest when inventory unit costs are V, as in this situation. c. report operating income between the extremes of FIFO and LIFO? Use to report an operating income amount between the FIFO and LIFO extremes. This is true in this situation and in others when inventory unit costs are d. report inventory on the balance sheet at the most current cost? Use V to report inventory on the balance sheet at the most current cost. The inventory costs are expensed as cost of goods sold, leaving in ending inventory the costs of the period. e. attain the best measure of net income for the income statement? expense with current revenue. The Use to attain the best measure of net income. This method produces the best current expense recognition by matching the expensed as cost of goods sold. inventory costs are Data Table Date Item Jan 1 6 21 27 Beginning inventory Purchase Purchase Purchase Quantity 150 units 90 units 160 units 60 units Unit Cost $ 9 17 18 19 Total Cost $ 1,350 1,530 2,880 1 ,140 Print Done