During April, 2017, Toys r Us sold 39,800 dolls at $49.90 each, but 111 of them were returned for minor defects. The company uses periodic inventory system, and inventory information for the month of April is given below:

Date Explanation Units Unit Cost Total Cost

April. 1 Inventory 5000 $ 23 $ 115,000

April 12 Purchases 15,000 24 360,000

April 19 Purchases 12,000 26 312,000

April 20 Purchase (123) 26 (3,198)

returns

April 26 Purchases 15,000 27 405,000

Totals 46,877 $ 1,188,802

Instructions:

(a) Compute the ending inventory and cost of goods sold at April 30, using the FIFO and weighted average method.

(b) Prepare an Income statement for each costing method assuming Selling and administrative expense is $150,000, and tax rate is 25%.