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, 750 units for $15,000 beginning inventory, 500 units, purchases, 600 units ending inventory, 350 units, and operating expenses, 54,800 Required: 1. Complete the table for each situation. In Situations A and B (costs rising), assume the following beginning inventory, 500 units at $8 = 54,000; purchases, 600 units at $10 = $6,000. In Situations and D (costs falling), assume the opposite that is, beginning Inventory, 500 units at $10 = $5,000, purchases, 600 units at $8 = $4,800 Use periodic inventory procedures = Costs Rising Situation A FIFO Situation B LIFO Costs Falling Situation Situation D FIFO LIFO $ 15,000 15,000 $ 15,000 $ 15,000 $ 4,000 6.000 10,000 3,500 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%) 6.500 8,500 4.800 3.700 1.110 4.800 4.800 4.800 Net Income $ 2,590