The company's accounting records show $400$ units were sold for revenue of $$8,400.$ Operating expense for January was $$2,000.$

Read the requirements.

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

Operating income

Data table

Requirements

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.

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.