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Suppose Reitman Jack, the specialty retailer, had these records for ladies' evening gowns during 2020. (Click icon to view records.) Assume sale of evening gowns totalled 125 units during 2020 and that Reitman uses the weight-average-cost method under the periodic inventory system to account for inventory. The income tax rate is 30%. Requirements 1. Compute Reitman's cost of goods sold for evening gowns in 2020. 2. Compute what cost of goods sold would have been if Reitman had purchased enough inventory in Decemberat $1,250 per evening gownto keep year-end inventory at the same level it was at the beginning of the year, 33 units. Requirement 1. Compute Reitman's cost of goods sold for evening gowns in 2020. (Round all interim calculations to the nearest whole dollar. Round your answer to the nearest whole dollar.) The cost of goods sold is $ Requirement 2. Compute what cost of goods sold would have been if Reitman had purchased enough inventory in December-at $1,250 per evening gownto keep year-end inventory at the same level it was at the beginning of the year, 33 units. The cost of goods with the new units would be $ Accounting records $ 33,000 Beginning inventory (33 @ $1,000) Purchase in February (21 @ $1,100) Purchase in June (56 @ $1,200) 23,100 67,200 35,000 Purchase in December (28 @ $1,250) $ 158,300 Goods available Print Done Limpire Capy Centre Ltd. uses laser printers. The company started the year with 100 containers af ink (weighted average cost of $9.00 each, FIFO cost of $8.70 cach). During the year, Umpire Copy Centre purchased 800 containers of ink at $10.10 each and sold 610 units for $24.00 each. The company paid operating expenses throughout the year, to a total of $3,500. Umpire Copy Centre's income statement excluding the effects of income tax under each of the weighted average-cost and FIFO inventory costing methods is given. Umpire Copy Centre is a corporation subject to a 19% income tax. (Click the icon to view the income statement.) Compute Umpire Copy Centre's income tax expense under the weighted average cost and FIFO inventory costing methods, which method would you select to (a) maximize income before tax and (h) minimize income tax expense? Compute Umpire Copy Centre's income tax expense using the weighted average-cost and FIFO inventory cosling methods. (Round your answer to the nearest whole dollar.) X Income Statement Umpire Copy Centre Ltd. Income Statement For the Year Ender December 31, 2020 Weighted Average Cost Sales revenue S 14,640 $ 6.088 Cost of goods sold Gross profit S 3,500 Operating expenses S 5,052 3 Net income before tax FIFO 14,640 6,021 8,619 3,500 5.119 Umpire Copy Centre Ltd. Income Statement For the Year Ended December 31, 2020 Weighted-Average cost FIFO Income tax expenso Sales revenue $ 14,640 $ 6088 14,640 6,021 Which method would you select to la) maximize income before tex and (b) minimize income tax expense? Cost of goods sold Gross profit Operating expenses 5 (a) The income before laxes is maximized by using the method of inventory costing. 8.552 $ 3,500 5.052 S 2,619 3,500 b) The income taxes are minimized by using the method of inventory costing $ 5,119 Net Income before tax Print Done Compute Umpire Copy Centre's income tax expense using the weighted-average-cost and FIFO inventory costing methods. (Round your answer to the nearest whole dollar.) Umpire Copy Centre Ltd. Income Statement - x For the Year Ended December 31, 2020 Weighted-Average Cost Income Statement FIFO Sales revenue 14,640 $ 6,088 14,640 6,021 Umpire Copy Centre Ltd. Cost of goods sold Gross profit $ Income Statement 8,552 $ 3,500 8,619 3,500 Operating expenses $ 5,052 $ 5,119 Net income before tax FIFO Income tax expense For the Year Ended December 31, 2020 Weighted-Average cost Sales revenue $ 14,640 $ 6,088 Cost of goods sold Gross profit $ 8,552 $ Operating expenses 3,500 $ 5,052 $ Net income before tax 14,640 6,021 Which method would you select to (a) maximize income before tax and (b) minimize income tax expense? (a) The income before taxes is maximized by using the method of inventory costing. 8,619 3,500 (b) The income taxes are minimized by using the method of inventory costing. 5,119 FIFO Print Done weighted-average-cost