Courtney Company uses a periodic inventory system. Data for 2020 are as follows: beginning merchandise inventory (December 31, 2019), 3,600 units at $36.20; purchases, 13,200 units at $40.10; operating expenses (excluding income taxes), $219,000; ending inventory per physical count at December 31, 2020, 3,500 units; sales price per unit, $70.20; and average income tax rate, 40 percent.

Required:

1. Prepare statements of earnings under the FIFO and weighted-average costing methods. (Round intermediate calculations to 2 decimal places and final answers to the nearest whole dollar.)

Statement of Earnings (Partial) Inventory Costing Method Weighted Units FIFO Average Sales revenue Cost of sales: Beginning inventory Purchases Cost of goods available for sale Ending inventory Cost of sales 0 0 0 0 0 0 0 0 Gross profit Expenses (operating) Pretax earnings Income tax expense Net earnings 0 0 $ 0 $ 0 2-a. Which method, FIFO or weighted-average cost, is preferable in terms of net earnings? O FIFO Weighted average cost 2-b. Which method, FIFO or weighted-average cost, is preferable in terms of cash flow? O FIFO Weighted average cost