E7-9 Choosing LIFO versus FIFO When Costs Are Rising and Falling (LO 7-3) Use the following information to complete this exercise: sales, 1050 units for $23,100, beginning inventory, 800 units, purchases. 900 units, ending inventory. 650 units, and operating expenses. $6,200. Required: 1. Complete the table for each situation. In Situations A and B (costs risingl, assume the following: beginning inventory, 800 units at $8 $6.400: purchases, 900 units at $10 - $9.000. In Situations and D (costs falling), assume the opposite that is, beginning inventory. 800 units at $10 = $8,000, purchases, 900 units at $8 = $7.200. Use periodic inventory procedures. Costs Faling Situation Situation FIFO LIFO $ 23,100 Costs Rising Situation A S ituation B L FIFO L IFO Sales Revenue $ 23,100 $23.100 Beginning inventory 15 8.400 Purchases 0.000 Goods Available for Sale Ending Inventory 0.500 Cost of Goods Sold 300 Gross Profit Operating Expenses 8.200 Income from Operations Income Tax Expense (309) POO $ 5.800 6.200