Units Acquired at Cost 145 units @ $7.00 = $1,015 Units sold at Retail 105 units @ $16.00 Date Activities Jan. 1 Beginning inventory Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase Totals 70 units @ $6.00 - 420 85 units @ $16.00 $5.50 = 190 units @ 405 units 1,045 $2.480 190 units The Company uses a perpetual inventory system. For specific identification, ending inventory con ha l a n nuaca 5 are from the lanvan: 20 purchase and 20 ro from ho Saved 1. Complete comparative income statements for the month of January for Laker Company for th expenses are $1,300, and that the applicable income tax rate is 40%. (Round your Intermediate LAKER COMPANY Income Statements For Month Ended January 31 Specific Weighted Identification Average FIFO LIFO 010 Sales Cost of goods sold Gross profit Expenses Income before taxes Income tax expense Net income $ 09 2. Which method yields the highest net income? Specific identification LIFO FIFO 2. Which method yields the highest net income? Specific identification LIFO FIFO Weighted average 3. Does net income using weighted average fall between that using FIFO and LIFO? Yes 4. If costs were rising instead of falling, which method would yield the highest net income? Specific identification FIFO LIFO