Income is to be evaluated under four different situations as follows:

a$.$ Prices are rising:

$(1)$ Situation A: FIFO is used.

$(2)$ Situation B: LIFO is used.

b$.$ Prices are falling:

$(1)$ Situation C: FIFO is used.

$(2)$ Situation D: LIFO is used.

The basic data common to all four situations are sales, $660$ units for $$19,800$; beginning inventory, $490$ units; purchases, $560$ units;

ending inventory, $390$ units; and operating expenses, $$6,500.$ The income tax rate is $30\%.$

Required:

Complete the following tabulation for each situation. In Situations A and $B($prices rising$),$ assume the following: beginning

inventory, $490$ units at $$14=$$$6,860$; purchases, $560$ units at $$15=$$$8,400.$ In Situations $C$ and $D($prices falling$),$ assume the

opposite; that is$,$ beginning inventory, $490$ units at $$15=$$$7,350$; purchases, $560$ units at $$14=$$$7,840.$ Use periodic inventory

procedures.

Complete the following sentence:

Complete the following sentence regarding the relative effects on the cash position for each situation.

Required $1$

Complete the following tabulation for each situation. In Situations A and B $($prices rising$),$ assume the following: beginning

inventory, $490$ units at $$14=$$$6,860$; purchases, $560$ units at $$15=$$$8,400.$ In Situations C and D $($prices falling$),$ assume

the opposite; that is$,$ beginning inventory, $490$ units at $$15=$$$7,350$; purchases, $560$ units at $$14=$$$7,840.$ Use periodic

inventory procedures.