(Learning Objective 2, 3: Applying the different inventory costing methods perpetual system) The records of Bell Aviation...

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(Learning Objective 2, 3: Applying the different inventory costing methods—

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

■ writing assignment

❙ Requirements 1. Prepare a partial income statement through gross profi t 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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Financial Accounting International Financial Reporting Standards

ISBN: 9780273777809

1st Global Edition

Authors: Walter T Harrison, Charles Horngren, Bill Thomas, Themin Suwardy

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