Courtney Company uses a periodic inventory system. The following data were available: beginning inventory, 1,000 units at $ 35; purchases, 4,000 units at $ 38; operating expenses (excluding income taxes), $ 91,500; ending inventory per physical count at December 31, 900 units; sales price per unit, $ 75; and average income tax rate, 30%.
Required:
1. Complete the body of the following income statements and the cost of goods sold calculation under the FIFO, LIFO, and weighted average costing methods.

2. Between FIFO and LIFO, which method is preferable in terms of (a) maximizing income from operations or (b) minimizing income taxes? Explain.
3. What would be your answer to requirement 2 if costs were falling? Explain.

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Weighted Average Income Statement Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Income from Operations Income Tax Expense Net Income Units FIFO LIFO *Cost of goods sold equaion: Beginning Inventory Purchases Goods Available for Sale Ending Inventory Cost of Goods Scld