Suppose a division of Nevada Instruments Incorporated that sells computer microchips has these inventory records for January 2021 : (Click the icon to view the inventory records.) The company's accounting records show 420 units were sold for revenue of $6 , 720 . Operating expense for January was $1 , 000 . Read the requirements. line "Operating income." Round the average cost per unit to three decimal places and all other figures to whole-dollar amounts. Show your computations. Begin by preparing the income statement using LIFO, then average, and finally FIFO cost. Requirements 1. 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 Nevada 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? State the reason for each of your answers. Data table.

1. Suppose a division of Nevada Instruments Incorporated that sells computer microchips has these
inventory records for January 2021 : (Click the icon to view the inventory records.) The
company's accounting records show 420 units were sold for revenue of $6 , 720 . Operating
expense for January was $1 , 000 . Read the requirements. line "Operating income." Round the
average cost per unit to three decimal places and all other figures to whole-dollar amounts. Show
your computations. Begin by preparing the income statement using LIFO, then average, and
finally FIFO cost. Requirements 1. 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 Nevada 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? State the reason
for each of your answers. Data table