Use the data and results from Exercise to prepare comparative income statements for the month of January for the company similar to those shown in Exhibit 6.8 for the four inventory methods. Assume expenses are $1,250, and that the applicable income tax rate is 40%. (Round amounts to cents.)
In Exercise Laker Company reported the following January purchases and sales data for its only product.

Required
1. Which method yields the highest net income?
2. Does net income using weighted average fall between that using FIFO and LIFO?
3. If costs were rising instead of falling, which method would yield the highest net income?

Units Acquired at Cost 140 units @ $6.00 840 60 units @ $5.00 = 300 180 units@ $4.50810 Date Activities Units Sold at Retail Jan. Beginning inventory Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase. 100 units@ $15 80 units @ $15 Totals. 380 units $1,950 80 units