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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

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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. Units 3,988 Unit Cost $21 Transactions a. Inventory, Beginning For the year: b. Purchase, April 11 c. Purchase, June 1 d. Sale, May 1 (sold for $49 per unit) e. Sale, July 3 (sold for $49 per unit) f. Operating expenses (excluding income tax expense), $222,000 19 22 10,300 9,000 3,980 6,98 Required: 1. Calculate the number and cost of goods available for sale. units Number of goods available for sale Cost of goods available for sale 2. Calculate the number of units in ending Inventory Ending inventory units 3. Compute the cost of ending inventory and cost of goods sold under (FIFO and (b) weighted average cost (Round Weighted average cost per unit to two decimal places and final answers to the nearest dollar amount.) Ending Inventory Cost of Goods Sold FIFO Weighted average 4. Prepare an income statement that shows amounts for the FIFO method in one column and for the weighted average method in another column. Include the following line items in the income statement: Sales, Cost of Goods Sold, Gross Profit, Operating Expenses, and Income from Operations. (Round Weighted average cost per unit to two decimal places and final answers to the nearest dollar amount.) ORION IRON CORP Income Statement For the Year Ended December 31 FIFO Weighted Average Sales revenue Cost of goods sold Gross proft Operating expenses Income from operations 5. Not available in connect. 6-o. Which inventory costing method may be preferred by Orion Iron Corp. for income tax purposes? O FIFO O Weighted average

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