E7-8 Evaluating the Effects of Inventory Methods on Income from Operations, Income Taxes, and Net Income (Periodic) [LO 7-3] Company uses a periodic inventory system. The following data were available: beginning inventory, 1400 units at $40: purchases, 3,600 units at $45;, operating expenses (excluding income taxes), $93,500; ending inventory per physical count at December 31, 950 units, sales price per unit, $80; and average income tax rate, 30%. Required: 1. Prepare income statements under the FIFO. LIFO, a nd weighted average costing methods. (Do not round intermediate calculations. Round your final answers to the nearest dollar amount.) omework Inventory Costing Method Weighted Average Units FIFO LIFO ncome Statement Sales Revenue Cost of Goods Sold* Gross Profit 0 Income from Operations Income Tax Expense Net Income Units FIFO LIFO Weighted Cost of Goods Sold Equation: Beginning Inventory Purchases Goods Available for Sale 0 Ending Inventory Cost of Goods Sold KPrev 10 of 15 l Next> 28 MacBook -a. Between FIFO and LIFO, which method is preferable in terms of maximizing income from operations, if costs are rising? O LIFO OFIFO 2-b. Between FIFO and LIFO, which method is preferable in terms of minimizing income taxes, if costs are rising? O LIFO O FIFO 3-a. Between FIFO and LIFO, which method is preferable in terms of maximizing income from operations, if costs are falling? LIFO OFIFO 3-b. Between FIFO and LIFO, which method is preferable in terms of minimizing income taxes, if costs are falling? LIFO FIFO