Courtney Company uses a periodic inventory system. The following data were available: beginning inventory, 2,400 units at $25; purchases, 5,100 units at $30; operating expenses (excluding income taxes), $98,500; ending inventory per physical count at December 31, 1,450 units; sales price per unit, $60; and average income tax rate, 30%.

Required:

1.	Prepare income statements under the FIFO, LIFO, and weighted average costing methods. (Do not round intermediate calculations. Round your final answers to the nearest dollar amount.)

		Inventory Costing Method
Income Statement	Units	FIFO	LIFO	Weighted Average
Sales Revenue
Cost of Goods Sold*
Gross Profit
Operating Expenses
Income from Operations
Income Tax Expense
Net Income

	Units	FIFO	LIFO	Weighted Average
*Cost of Goods Sold Equation:
Beginning Inventory
Purchases
Goods Available for Sale
Ending Inventory
Cost of Goods Sold

2-a.	Between FIFO and LIFO, which method is preferable in terms of maximizing income from operations, if costs are rising?

	LIFO
	FIFO

2-b.	Between FIFO and LIFO, which method is preferable in terms of minimizing income taxes, if costs are rising?

	LIFO
	FIFO

3-a.

Between FIFO and LIFO, which method is preferable in terms of maximizing income from operations, if costs are falling?

	LIFO
	FIFO

3-b.

Between FIFO and LIFO, which method is preferable in terms of minimizing income taxes, if costs are falling?

	LIFO
	FIFO