Courtney Company uses a periodic inventory system. The following data were available: beginning inventory, $1,900$ units at $$20$; purchases, $5,700$ units at $$25$; operating expenses $($excluding income taxes$),$ $$96,000$; ending inventory per physical count at December $31,1,200$ units; sales price per unit, $$50$; 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, LIFO, and weighted average costing methods. $($Do not round intermediate calculations. Round your final answers to the nearest dollar amount.$)$

$\backslash$table$[[\backslash$table$[[$Income Statement$],[$Sales Revenue$]],\backslash$table$[[$Units$],[6,400]],$Inventory Costing Method$],[$FIFO$,$LIFO,$\backslash$table$[[$Weighted$],[$Average$]]],[$$$,320,000,$$$,320,000,$$$,320,000],[$Cost of Goods Sold$*],[$Gross Profit,",,$320,000,,320,000,,320,000],[$Operating Expenses$],[$Income from Operations,,,$320,000,,320,000,,320,000],[$Income Tax Expense$],[$Net Income,,$$,320,000,$$$,320,000,$$$,320,000],[-$ Cost of Goods Sold Equation$],[$Beginning Inventory,$1,900,,,,,,],[$Purchases$,,,,,,,$is$],[$Goods Available for Sale,$1,900,,0,,0,,0],[$Ending Inventory$],[$Cost of Goods Sold,$1,900,$$$,0,$$$,0,$$$,0]]$