E7-9 (Algo) Analyzing and Interpreting the Financial Statement Effects of FIFO, LIFO, and Weighted Average Cost [LO 7-3) 34 Scoresby Incorporated tracks the number of units purchased and sold throughout each year but applies its Inventory costing metho at the end of the year, as if it uses a periodic inventory system. Assume its accounting records provided the following Information et the end of the annual accounting period, December 31. Transactions Unito Unit Cont a. Inventory. Beginning 1,500 $. 31 Yor the year b. Purchase, March 5 7,500 32 c. Purchase, September 19 3,500 d. Sala, April 15 (sold for $76 per unit) 2,200 e. Sale, October 31 (sold for $79 per unit) 6,500 t. Operating expensen (excluding income tax expense), $398,000 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, (O) LIFO, and (c) weighted average cost. 4. Prepare an income statement that shows 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: Required 2 Required 3 Required 4 Required 6 Calculate the number and cost of goods available for sale. Number of Goods Available for Sale Cost of Goods Available for Sale 12,500 units 405,500 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, (D) LIFO, and 4. Prepare an income statement that shows the FIFO method, LIFO method and weighted av 6. Which inventory costing method minimizes income taxes? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 6 Calculate the number of units in ending inventory. Ending Inventory 21,200 units Complete this question by entering your answers in the tabs below. Cost of Goods Required 1 Required 2 Required 3 Required 4 Required 6 Compute the cost of ending Inventory and cost of goods sold under (a) FIFO, (D) LIFO, and (c) weighted average cost. Cost of Ending Inventory Sold FIFO LIFO Weighted Average Cont (Required 2 Required 4 ) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 6 Prepare an income statement that shows the FIFO method, LIFO method and welghted average method. SCORESBY INCORPORATED Income Statement For the Year Ended December 31 FIFO LIFO Weighted Average Sales Revenue Income (1.036) from Operations
