Ayayai Inc. is trying to determine whether to use the FIFO or average cost formula. The accounting records show the following selected inventory information: Cost of Goods Sold Units Cost Date Oct. 2 15 Purchases Units Cost Total 9,600 $13 $124,800 16,000 15 240,000 Ending Inventory Total Units Cost Total 9,600 $13 $124,800 [1] [2] [3] [4] [5] [6] 29 21,400 [7] [10] [8] [9] [11] [12] [13] [14] [15] The company accountant has prepared the following partial income statement to help management understand the financial statement impact of each cost determination cost formula. FIFO Average $523,000 $523,000 Sales Cost of goods sold Gross profit Operating expenses Income before income tax Income tax expense (30%) 191,000 191,000 Fill in the missing amounts in the perpetual inventory schedule, assuming the use of the FIFO cost formula. (Round "Cost" answers to 2 decimal places, e.g. 1.25 and other answers to the nearest whole dollar, eg. 5,275.) Cost of Goods Sold Cost Ending Inventory Cost Total Units Total 9,600 $13 $124,80C 9600 13 16000 15 $ 364800 ts sold) 15 $ 268800 151 x e Textbook and Media Fill in the missing amounts in the perpetual inventory schedule, assuming the use of the average cost formula. (Round "Cost" answers to 2 decimal places, e.g. 1.25 and other answers to the nearest whole dollar, e.g. 5,275.) Fill in the missing amounts in the perpetual inventory schedule, assuming the use of the average cost formula. (Round "Cost" answers to 2 decimal places, e.g. 1.25 and other answers to the nearest whole dollar, e.g. 5,275.) Endi Cost of Goods Sold Cost Units Total Units Purchases Date Units Cost Total Oct. 2 9,600 $13 $124,800 15 16,000 15 240,000 9,600 29 21,400 e Textbook and Media Fill in the missing information in the blanks shown in the partial income statement above. (Round answers to the nearest whole dollar, eg. 5,225.) FIFO Average $523,000 Sales $523,000 Cost of goods sold Gross profit Operating expenses 191,000 191,000 Income before income tax Income tax expense (30%) Net income e Textbook and Media Explain whether the comparative net incomes of each cost formula determined in part (c) will be expected to increase, decrease, or not change if (1) costs fall, and (2) costs remain stable. (1) Currently, as shown in (a) above, FIFO results in a net income than the average cost formula. This is anticipated when If instead costs , the use of the FIFO cost formula will result in a net income compared to the average cost1 (2) If costs remain stable, the two cost formulas produce the same net incomes. e Textbook and Media