Courtney Company uses a periodic inventory system. The following data were available: beginning inventory, $2,100$ units at $$30$; purchases, $4,900$ units at $$35$; operating expenses $($excluding income taxes$),$ $$97,000$; ending inventory per physical count at December $31,1,300$ units; sales price per unit, $$75$; and average income tax rate, $30\%.$

Required:

Complete the income statements and the cost of goods sold calculation under the FIFO, LIFO, and weighted average costing methods.

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

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

$3-$a$.$ Between FIFO and LIFO, which method is preferable in terms of maximizing income from operations, if costs are falling?

$3-$b$.$ Between FIFO and LIFO, which method is preferable in terms of minimizing income taxes, if costs are falling?

Complete this question by entering your answers in the tabs below.

Req $1$

Req $2$ A

Req $2$B

Req $3A$

Req $3$B

Complete the income statements and the cost of goods sold calculation under the FIFO, LFO, and weighted average costing methods. $($Do not round intermediate calculations. Round your final answers to the nearest dollar amount.$)$

$\backslash$table$[[$Income Statement,Units,Inventory Costing Method$],[$FIFO$,$LIFO,$\backslash$table$[[$Weighted$],[$Average$]]],[$Sales Revenue,$5,,,],[$Cost of Goods Sold$*],[$Gross Profit$],[$Operating Expenses$],[$Income from Operations$],[$Income Tax Expense$],[$Net Income$],[$Cost of Goods Sold Equation$],[$Beginning Inventory$],[$Purchases$],[$Goods Available for Sale$],[$Ending Inventory,,,,$]]$