ollowing 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, $317$ units; unit sales price, $$51$; Expenses, $$1,600$

Rank the three methods in order of income taxes paid $($favorable cash flow$).\backslash$table$[[,$FIFO,LIFO,$\backslash$table$[[$Average$],[$Cost$]]],[$Cost of goods sold$],[$Beginning inventory $(381$ units @ $$26),$$$,9,906,$$$,9,906,$$$,9,906],[$Purchases $(468$ units @ $$34),,15,912,,15,912,,15,912],[$Goods available for sale$],[$Ending inventory $(532$ units $)],[$Cost of goods sold,,,,,,$]]$

Prepare an income statement through pretax income for each method.

Sales, $317$ units; unit sales price, $$51$; Expenses, $$1,600$

Note: Use the COGS amount from Required $1.$

$\backslash$table$[[,$FIFO,LIFO,$\backslash$table$[[$Average$],[$Cost$]]],[,,,],[,,,],[,,,],[,,,]]$

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

$\backslash$table$[[$FIFO$],[$LIFO$],[$Average cost$]]$