Suppose a divison of Florida Instruments Incorporated that sells computer microchips has these inventory records for January 2018​: Date      Item                          Quantity       Unit Cost         Total Cost Jan  1   Beginning Inventory   140 units     $ 8                  $ 1,120         6  Purchase                      50 units         14                    700        21  Purchase                     200 units        16                  3,200         27  Purchase                     70 units          17                   1,190 Prepare the​ company's January​, multistep income statement. Calculate income using the​ LIFO, average-cost, and FIFO methods. Label the bottom line​ "Operating income." Round the average cost per unit to three decimal places and all other figures to​ whole-dollar amounts. Show your computations.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Suppose a divison of Florida Instruments Incorporated that sells computer microchips has these inventory records for January 2018​:

Date      Item                          Quantity       Unit Cost         Total Cost

Jan  1   Beginning Inventory   140 units     $ 8                  $ 1,120

        6  Purchase                      50 units         14                    700

       21  Purchase                     200 units        16                  3,200 

       27  Purchase                     70 units          17                   1,190

Prepare the​ company's January​, multistep income statement. Calculate income using the​ LIFO, average-cost, and FIFO methods. Label the bottom line​ "Operating income." Round the average cost per unit to three decimal places and all other figures to​ whole-dollar amounts. Show your computations.
2. Suppose you are the financial vice president of Florida Instruments. Which inventory method will you use if your motive is to
a. minimize income​ taxes?
b. report the highest operating​ income?
c. report operating income between the extremes of FIFO and​ LIFO?
d. report inventory on the balance sheet at the most current​ cost?
e. attain the best measure of net income for the income​ statement?
 
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