Laker Company reported the following January purchases and sales data for its only product.

Laker Company reported the following January purchases and sales data for its only product.
Date Activities Units Acquired at Cost Units Sold at Retail
Jan. 1 Beginning inventory 140 units @ $6.00 = $ 840
Jan. 10 Sales 100 units@$15
Jan. 20 Purchase 60 units @ $5.00 = 300
Jan. 25 Sales 80 units@$15
Jan. 30 Purchase 180 units @ $4.50 = 810
Totals 380 units $1,950 180 units
laker uses a perpetual inventory system. For specific identification, ending inventory consists of 200
units, where 180 are from the Januar; 30 purchase, 5 are from the January 20 purchase, and 15 are
from beginning inventory.
1. Complete comparative income statements for the month of January for laker Company for the four
inventor/ methods. Assume expenses are $1,250, and that the applicable income tax rate is 40%.
(Round your lntermediate calculations to 2 decimal l)laces.)

Which method yields the highest net income?
UFO
Specific identification
FIFO
Weighted average

Does net income using weighted average fall between that using FIFO and UFO?
Yes
No

If costs were rising instead of falling, which method would yield the highest net income?
UFO
FIFO
Weighted average
Specific identification