Orion Iron Corporation 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 $31.$

Required:

Calculate the number and cost of goods available for sale.

Calculate the number of units in ending inventory.

Compute the cost of ending inventory and cost of goods sold under $($a$)$ FIFO, $($b$)$ LIFO, and $($c$)$ weighted average cost.

Prepare an income statement that shows under the FIFO method, LIFO method and weighted average method.

Which inventory costing method minimizes income taxes?

Complete this question by entering your answers in the tabs below.

Calculate the number and cost of goods available for sale$\mathrm{.}2.$ Orion Iron Corporation 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 $300$ $ $10$

For the year:

b$.$ Purchase, April $117008$

c$.$ Purchase, June $160011$

d$.$ Sale, May $1($sold for $$38$ per unit$)300$

e$.$ Sale, July $3($sold for $$38$ per unit$)550$

f$.$ Operating expenses $($excluding income tax expense$),$ $$19,300$

Required:

$1.$ Calculate the number and cost of goods available for sale.

$2.$ Calculate the number of units in ending inventory.

$3.$ Compute the cost of ending inventory and cost of goods sold under $($a$)$ FIFO, $($b$)$ LIFO, and $($c$)$ weighted average cost.

$4.$ Prepare an income statement that shows under the FIFO method, LIFO method and weighted average method.

$6.$ Which inventory costing method minimizes income taxes?Calculate the number and cost of goods available for sale.

Number of Goods Available for Sale units

Cost of Goods Available for Sale