1. Botch Corp. sold 5,410 units of its product at $45.90 per unit in year 2011 and incurred operating expenses of $6.90 per unit in selling the units. It began the year with 690 units in inventory and made successive purchases of its product as follows.

Jan.	1	Beginning inventory	690 units	@ $18.90 per unit
Feb.	20	Purchase	1,590 units	@ $19.90 per unit
May	16	Purchase	790 units	@ $20.90 per unit
Oct.	3	Purchase	490 units	@ $21.90 per unit
Dec.	11	Purchase	3,390 units	@ $22.90 per unit
		Total	6,950 units

Required:

1.

Prepare comparative income statements for the three inventory costing methods of FIFO, LIFO, and weighted average which includes detailed cost of goods sold section as part of each statement. The company uses a periodic inventory system, and its income tax rate is 30%. (Input all amounts as positive values. Cost of goods sold is the difference of Cost of goods available for sale and ending inventory. Round your per unit costs to 3 decimal places. Round your final answers to the nearest dollar amount. Omit the "$" sign in your response.)

BOTCH CORP. Income Statements Comparing FIFO, LIFO, and Weighted Average For Year Ended December 31, 2011
	FIFO	LIFO	Weighted Average
	$	$	$
Cost of goods sold
Cost of goods sold
Expenses
	$	$	$

2. Wayman Company wants to prepare interim financial statements for the first quarter. The company wishes to avoid making a physical count of inventory. Wayman's gross profit rate averages 25%. The following information for the first quarter is available from its records.

January 1 beginning inventory	$	400,260
Cost of goods purchased		1,039,050
Sales		1,291,150
Sales returns		10,450

Required:

Use the gross profit method to estimate the company's first quarter ending inventory.