Calco's sales for the year 2015 were $115,000 ($92/unit). On January 1, 2015, Calco's beginning inventory showed 120 units, costing $4,800. During 2015, Calco purchased 1,420 units at $38 each. Calco's income statement is as follows

Requirements
1. Complete the income statement for Calco, using FIFO and weighted average cost methods.
2. Calculate the inventory turnover, using FIFO and weighted average cost methods.
3. Which method shows higher profit and inventory turnover? Explain.

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Income Statement Inventory Costing Method Weighted Average Units FIFO Sales Cost of Goods Sold: Beginning Inventory Purchases Goods Available for Sale Ending Inventory Cost of Goods Sold Gross Profit Operating Expenses $25,000 $25,000 Operating Income Income Tax Expense (30%) Net Income