E7-9 (Algo) Evaluating the Choice among Three Alternative Inventory Methods Based on Cash Flow Effects LO7-2, 7-3 Following is partial information for the income statement of Audio Solutions Company under three different inventory costing methods, assuming the use of a periodic inventory system: Required: 1. Compute cost of goods sold under the FIFO, LIFO, and average cost inventory costing methods. 2. Prepare an income statement through pretax income for each method. Sales, 339 units; unit sales price, $52; Expenses, $1,640 3. Rank the three methods in order of income taxes paid (favorable cash flow - that is, rank the method as 1 if it produces the lowest taxes, and 3 if it produces the highest taxes.). Complete this question by entering your answers in the tabs below. Compute cost of goods sold under the FIFO, LIFO, and average cost inventory costing m Note: Round intermediate calculations to 2 decimal places. Round your answers to the n E7-9 (Algo) Evaluating the Choice among Three Alternative Inventory Methods Based on Cash Flow Effects LO7-2, 7-3 Following is partial information for the income statement of Audio Solutions Company under three different inventory costing methods, assuming the use of a periodic inventory system: Required: 1. Compute cost of goods sold under the FIFO, LIFO, and average cost inventory costing methods. 2. Prepare an income statement through pretax income for each method. Sales, 339 units; unit sales price, $52; Expenses, $1,640 3. Rank the three methods in order of income taxes paid (favorable cash flow - that is, rank the method as 1 if it produces the lowest taxes, and 3 if it produces the highest taxes.). Complete this question by entering your answers in the tabs below. Prepare an income statement through pretax income for each method. Sales, 339 units; unit sales price, $52; Expenses, $1,640 Note: Use the COGS amount from Required 1. E7-9 (Algo) Evaluating the Choice among Three Alternative Inventory Methods Based on Cash Flow Effects LO7-2, 7-3 Following is partial information for the income statement of Audio Solutions Company under three different inventory costing methods, assuming the use of a periodic inventory system: Required: 1. Compute cost of goods sold under the FIFO, LIFO, and average cost inventory costing methods. 2. Prepare an income statement through pretax income for each method. Sales, 339 units; unit sales price, \$52; Expenses, $1,640 3. Rank the three methods in order of income taxes paid (favorable cash flow - that is, rank the method as 1 if it produces the lowest taxes, and 3 if it produces the highest taxes.). Complete this question by entering your answers in the tabs below. Rank the three methods in order of income taxes paid (favorable cash flow)
