E7-6 Analyzing and Interpreting the Financial Statement Effects of Periodic FIFO, LIFO, and Weighted Average Cost [LO 7-3] Orion Iron Corp. tracks the number of units purchased and sold throughout each year but applies its inventory costing method at the end of the year, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31. Transactions Units Unit Cost a. Inventory, Beginning 500 $ 10 For the year: b. Purchase, April 11 800 8 c. Purchase, June 1 700 12 d. Sale, May 1 (sold for $38 per unit) 500 e. Sale, July 3 (sold for $38 per unit) 520 f. Operating expenses (excluding income tax expense), $19,000 Required: 1. Calculate the number and cost of goods available for sale. 2. Calculate the number of units in ending inventory. 3. Compute the cost of ending inventory and cost of goods sold under (a) FIFO, (b) LIFO, and (c) weighted average cost. 4. Prepare an income statement that shows under the FIFO method, LIFO method and weighted average method. 6. Which inventory costing method minimizes income taxes?

Complete this question by entering your answers in the tabs below. Required 1Required 2 Required 3 Required 4Required 6 Calculate the number and cost of goods available for sale. Number of Goods Available for Sale 2,000 units Cost of Goods Available for ale 19,800 Required Required 2>