E7-8 Evaluating the Effects of Inventory Methods on Income from Operations, Income Taxes, and Net Income (Periodic) [LO 7-3]

Courtney Company uses a periodic inventory system. The following data were available: beginning inventory, 1,100 units at $25; purchases, 3,300 units at $35; operating expenses (excluding income taxes), $92,000; ending inventory per physical count at December 31, 800 units; sales price per unit, $80; and average income tax rate, 30%.

Required:

1. Prepare income statements under the FIFO, LIFO, and weighted average costing methods. (Do not round intermediate calculations. Round your final answers to the nearest dollar amount.)

Required: 1. Prepare income statements under the FIFO, LIFO, and weighted average costing methods. (Do not round intermediate calculations. Round your final answers to the nearest dollar amount.) Inventory Costing Method Income Statement Units FIFO LIFO Weighted Average $ 288,000 Sales Revenue $ 288,000 3,600 $ 288,000 3,600 Cost of Goods Sold* Gross Profit 288,000 288,000 288,000 92,000 92,000 92.000 196,000 196,000 196,000 Operating Expenses Income from Operations Income Tax Expense Net Income $ 196,000 $ 196,000 $ 196,000 Units FIFO LIFO Weighted Average *Cost of Goods Sold Equation: Beginning Inventory Purchases Goods Available for Sale Ending Inventory Cost of Goods Sold 0 0 0 0 0 $ 0 $ 0 $ 0