10.00 points
Laker uses a perpetual inventory system. For specific identification ending inventory consists of 390 units where 200 are from the January 30 purchase 80 are from the January 20 purchase and 110 are frombeginning inventory.
Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $2700 and that the applicable income tax rate is 39%.(Do not round your Intermediate calculations.)
Which method yields the highest net income?
Does net income using weighted average fall between that using FIFO and LIFO?
If costs were rising instead of falling which method would yield the highest net income?