Jefferson’s Copy Center uses laser printers. Assume Jefferson started the year with 92 containers of ink (average cost of $9.00 each, FIFO cost of $8.90 each, LIFO cost of $8.05 each). During the year, Jefferson purchased 680 containers of ink at $9.80 and sold 580 units for $20.25 each.
Jefferson paid operating expenses throughout the year, a total of $3,750. Jefferson is not subject to income tax.
Prepare Jefferson’s income statement for the current year ended December 31 under the average, FIFO, and LIFO inventory costing methods. Include a complete statement heading.