E7-7 Analyzing and Interpreting the Financial Statement Effects of FIFO, LIFO, and Weighted Average Cost [LO 7-3] Scoresby Inc. 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. Units 1,500 Unit Cost $24 Transactions a. Inventory. Beginning For the year b. Purchase, March 5 c. Purchase, September 19 d. Sale, April 15 (sold for $69 per unit) e. Sale, October 31 (sold for $72 per unit) f. Operating expenses (excluding income tax expense). $400,000 7,500 3,500 2,400 6,500 Required: 1. Calculate the number and cost of goods available for sale. units Number of Goods Available for Sale Cost of Goods Available for Sale 2. Calculate the number of units in ending inventory. Endling Inventory units 3. Compute the cost of ending inventory and cost of goods sold under (a) FIFO, (b) LIFO, and (c) weighted average cost. Cost of Ending Cost of Goods Inventory Sold FIFO LIFO Weighted Average Cost 4. Prepare an income statement that shows the FIFO method. LIFO method and weighted average method. SCORESBY INC. Income Statement For the Year Ended December 31 FIFO L IFO Weighted Average Income (Loss) from Operations