Problem:
Jonah's Copy Center uses laser printers. Assume Jonah started the year with 100 containers of ink (average cost of $9.50 each, FIFO cost of $8.40 each, LIFO cost of $8.10 each). During the year, Jonah purchased 700 containers of ink at $9.90 and sold 600 units for $20.50 each. Jonah paid operating expenses throughout the year, a total of $3,900. Jonah is not subject to income tax.
Required:
Question: Prepare Jonah's income statement for the current year ended December 31 under the average, FIFO, and LIFO inventory costing methods. Include a complete statement heading.
Note: Be sure to show how you arrived at your answer.