Daniel Company uses a periodic inventory system. Data for the current year: beginning merchandise inventory $($ending inventory

December $31,$ prior year$),2,120$ units at $$37$; purchases, $7,810$ units at $$39$; expenses $($excluding income taxes$),$ $$194,400$; ending

inventory per physical count at December $31,$ current year, $1,690$ units; sales, $8,240$ units; sales price per unit, $$78$; and average

income tax rate, $34$ percent.

Required:

$1-$a$.$ Compute cost of goods sold under the FIFO, LIFO, and average cost inventory costing methods.

$1-$b$.$ Prepare income statements under the FIFO, LIFO, and average cost inventory costing methods.

Between FIFO and LIFO, which method is preferable in terms of $(a)$ net income and $(b)$ income taxes paid $($cash flow$)?$

Between FIFO and LIFO, which method is preferable in terms of $($a$)$ net income and $($b$)$ income taxes paid $($cash flow$),$ assuming that

prices were falling?

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Req $1$a

Compute cost of goods sold under the FIFO, LIFO, and average cost inventory costing methods.

Note: Do not round your intermediate calculations. Round your final answers to the nearest whole dollar amount.