Orion Iron Corp. tracks the number of units purchased and sold throughout each year but applies its inventory costing method at the end of the year, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31.

Transactions	Units			Unit Cost
a. Inventory, Beginning		400		$	15
For the year:
b. Purchase, April 11		850			13
c. Purchase, June 1		750			17
d. Sale, May 1 (sold for $43 per unit)		400
e. Sale, July 3 (sold for $43 per unit)		510
f. Operating expenses (excluding income tax expense), $18,900

1.)

Compute the cost of ending inventory and cost of goods sold under (a) FIFO, (b) LIFO, and (c) weighted average cost. (Do not round intermediate calculations. Round your final answers to the nearest dollar amount.)

	COST OF ENDING INVENTORY	COST OF GOODS SOLD
FIFO
LIFO
WEIGHTED AVERAGE COST

2.) Prepare an Income Statement that shows the FIFO method, LIFO method and weighted average method.

	FIFO	LIFO	WEIGHTED AVERAGE
1.)
2.)
3.)
4.)
INCOME LOSS FROM OPERATIONS

3.) Which inventory costing method minimizes income taxes?

A.) FIFO

B.) LIFO

C.) Weighted Average Cost