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:

Compute cost of goods sold under the FIFO, LIFO, and average cost inventory costing methods.

Prepare an income statement through pretax income for each method.

Sales, 302 units; unit sales price, $51; Expenses, $1,580

Rank the three methods in order of income taxes paid (favorable cash flow).

R1:

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 (385 units @ $26)	$10,010	$10,010	$10,010
Purchases (455 units @ $34)	15,470	15,470	15,470
Goods available for sale
Ending inventory (538 units )
Cost of goods sold

R2

Prepare an income statement through pretax income for each method. Sales, 302 units; unit sales price, $51; Expenses, $1,580

Note: Use the COGS amount from Required 1.

	FIFO	LIFO	Average Cost

R3:

Rank the three methods in order of income taxes paid (favorable cash flow).

FIFO
LIFO
Average cost

Please explain the step as thoroughly as possible. Thank you for your help.