Effects of Inventory Costing Methods Beston, Inc. has the following income statement data available for the year: Sales revenue $737,200 Operating expenses 243,700 Interest expense Income tax rate 39,500 33% Beston uses a perpetual inventory accounting system and the average cost method. Beston is considering adopting the FIFO or LIFO method for costing inventory. Beston's accountant prepared the following data: If Average Cost Used If FIFO Used II LIFO Used Ending inventory Cost of goods sold $65,950 399,050 $78,500 386,500 $40,100 424,900 Required: 1. Compute income before taxes, income taxes expense, and net income for each of the three inventory costing methods. (Round to the nearest dollar) Income before taxes Average Cost FIFO LIFO Income tax expense Net come 2. Conceptual Connection: Which method produces the most realistic amount for net income? For inventory? Check My Work more Check My Work unes remaining Previous Next