ment CALCULATOR PRINTER VERSION 4 BACK NEXT Question 11 The management of Metlock Co., SA is reevaluating the appropriateness of using its present inventory cost flow method. They request your help in determining the results of operations for 2017 if either the FIFO method or the average-cost method had been used. For 2017, the accounting records show the following data. Inventories Purchases and Sales Beginning (11,600 units) 29,500 Total net sales (261,000 units) 1,003,400 Ending (17,400 units) Total cost of goods purchased (266,800 units) 748,432 Purchases were made quarterly as follows. Units Quarter 1 2 3 4 69,600 58,000 58,000 81,200 266,800 Unit Cost 2.59 2.79 2.89 2.94 Total Cost 180,264 161,820 167,620 238,728 748,432 Operating expenses were 144,000, and the company's income tax rate is 34%. Your answer is partially correct. Try again. Prepare comparative condensed income statements for 2017 under FIFO and average-cost. (Round per unit cost to 3 decimal places, e.g. 15.125 and final answers to o decimal places, e.g. 125.) METLOCK CO., SA Condensed Income Statement For the Year Ended December 31, 2017 , ment CALCULATOR PRINTER VERSION 4 BACK NEXT FIFO Average-cost Sales Revenues 1003400 1003400 Cost of Goods Sold Beginning Inventory 29500 29500 Cost of Goods Purchased 748432 748432 Cost of Goods Available for Sale 777932 777932 Ending Inventory 51156 48810.783 X Cost of Goods Sold 726776 729121.217 X Gross Profit 276624 274278.783 Operating Expenses 144000 144000 Income before Income Taxes 132624 130278.783 Income Tax Expense 45092.160 44294.786 Net Income / (Loss) 87532 85984 ment CALCULATOR PRINTER VERSION 4 BACK NEXT x Your answer incorrect. Try again. Which cost flow method (FIFO or average-cost) produces the more meaningful inventory amount for the statement of financial position? Average-cost method produces the more meaningful inventory amount. LINK TO TEXT Your answer correct. Which cost flow method (FIFO or average-cost) is more likely to approximate actual physical flow of the goods? FIFO method is most likely to approximate actual physical flow. LINK TO TEXT x Your answer incorrect. Try again. How much additional cash will be available for management under average-cost than under FIFO? Additional cash will be available for management