E7-11 (Algo) Choosing LIFO versus FIFO When Costs Are Rising and Falling [LO 7-3] Use the following information to complete this exercise: sales, 650 units for $23,100; beginning Inventory, 400 units; purchases, 500 units; ending Inventory. 250 units; and operating expenses. $4,400, Required: 1. Complete the table for each situation. In Situations A and B (costs rising), assume the following: beginning inventory, 400 units at $16 = $6,400; purchases, 500 units at $18 = $9.000. In Situations C and D (costs faling), assume the opposite that is, beginning Inventory, 400 units at $18 = $7,200. purchases, 500 units at $16 - $8,000. Use periodic inventory procedures. Costs Falling Situation Situation D FIED LIFO $ 23,100 $ 23.100 400 $ 400 7,200 7,200 7,600 7.800 $ $ Costs Rising Situation A Situation B FIFO LIFO 23,100 $ 23.100 6,400 $ 6,400 9,000 9,000 15.400 15,400 4,500 10,900 15.400 12.200 4,400 4.400 7.800 2.340 $ 5.400 7.600 Sales Revenue Beginning inventory Purchases Goods Available for Sale Ending Inventory Cost of Goods Sold Gross Profit Operating Expenses Income from Operations Income Tax Expense (30%) Net Income 7.500 4,400 4,400