2. Which method yields the highest net income?

• Weighted average

• LIFO

• FIFO

• Specific identification

3. Does net income using weighted average fall between that using FIFO and LIFO?

• Yes

• No

4. If costs were rising instead of falling, which method would yield the highest net income?

• LIFO

• Specific identification

• Weighted average

• FIFO

Laker Company reported the following January purchases and sales data for its only product. Date Activities Beginning Jan. 1 inventory Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase Totals Units Acquired at Cost Units sold at Retail 220 units @ $14.50 - $ 3,190 170 units @ $23.50 170 units @ $13.50 = 2,295 200 units @ $23.50 370 units @ $13.00 - 4,810 760 units $10,295 370 units Required: . Complete comparative income statements for the month of January for Laker Company using the periodic inventory system for the our inventory methods. Assume expenses are $2,050, and that the applicable income tax rate is 40%. (Round your average cost per unit to 2 decimal places.) LAKER COMPANY Income Statements For Month Ended January 31 Specific Weighted Identification Average FIFO LIFO Sales Cost of goods sold Gross profit Expenses Income before taxes Income tax expense Net income