P6-63A. (Learning Objective 2, 3: Applying the different inventory costing methods—

perpetual system) The records of Byron Aviation include the following accounts for inventory of aviation fuel at December 31 of the current year:

Requirements 1. Prepare a partial Income Statement through gross profit under the average, FIFO, and LIFO methods. Round 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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Inventory Jan 1 Mar 6 Jun 22 Balance Purchase 780 units @ $7.80 $ 6,084 310 units @ $7.90 2,449 Oct 4 Purchase 8,360 units @ $8.10 Purchase 67,716 540 units @ $9.20 4,968 Sales Revenue Dec 31 9,010 units $132,447