E7-9 Choosing LIFO versus FIFO When Costs Are Rising and Falling (LO 7-3) Use the following information to complete this exercise: sales, 650 units for $23,100; beginning inventory, 400 units, purchases, 500 units; ending inventory, 250 units, and operating expenses, $4,400. Required: 1. Complete the table for each situation, In Situations A and B (costs rising), assume the following: beginning inventory, 400 units at $16 = $6.400: purchases, 500 units at $18 = $9.000. In Situations C and D (costs falling), assume the opposite that is, beginning Inventory, 400 units at $18 = $7.200; purchases, 500 units at $16 - $8,000. Use periodic inventory procedures. Costs Rising Situation A Situation B FIFO LIFO Costs Falling Situation Situation D FIFO LIFO $ $ 23,100 23.100 Sales Revenue $ 23,100 $23,100 $ 6.400 9,000 15,400 4,500 Beginning Inventory Purchases Goods Available for Sale Ending Inventory Cost of Goods Sold Gross Profit Operating Expenses Income from Operations Income Tax Expense (30%) 4,400 4.400 4,400 10.900 12,200 4,400 7,800 2.340 $ 5,460 + Net Income