The records of Armstrong Aviation Supply Inc. include the following accounts for inventory of aviation fuel at

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The records of Armstrong Aviation Supply Inc. include the following accounts for inventory of aviation fuel at December 31, 2017:

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Requirements

1. Prepare a partial income statement through gross profit under the weighted-average-cost and FIFO methods assuming the periodic system is used. Round weighted-average cost per unit to four decimal places and all other amounts to the nearest dollar.

2. Which inventory method would you use to minimize income tax? Explain why this method causes income tax to be the lowest.

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Financial Accounting

ISBN: 978-0134564142

6th Canadian edition

Authors: Walter Jr. Harrison, Charles T. Horngren, C. William Thomas, Greg Berberich, Catherine Seguin

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