Question
Following is partial information for the income statement of Audio Solutions Company under three different inventory costing methods, assuming the use of a periodic
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, 317 units; unit sales price, $54; Expenses, $1,570 3. Rank the three methods in order of income taxes paid (favorable cash flow). Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute cost of goods sold under the FIFO, LIFO, and average cost inventory costing methods. Note: Round intermediate calculations to 2 decimal places. Round your answers to the nearest whole dollar amount. FIFO LIFO Average Cost Cost of goods sold Beginning inventory (387 units @ $26) $ Purchases (469 units @ $34) 10,062 $ 10,062 $ 10,062 15,946 15,946 15,946 Goods available for sale Ending inventory (539 units) Cost of goods sold 26,008 26,008 26,008 18,326 Required 1 Required 2 > < Prev 8 of 11 Next >
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