P7.4 (Algo) Evaluating the LIFO and FIFO Choice When Costs Are Rising and Falling LO7.2, 7.3 Income is to be evaluated under four different situations as foliows a. Prices are rising (7) Situation A. FIFO is used (2) Stuation B: LiFO is used b. Prices are falling (1) Situation C. FIFO is used (2) Situation D. LIFO is used. The basic data common to all four situations are sales, 540 units for $16,200, beginning inventory, 310 units, purchases, 390 units; ending inventory, 160 units; and operating expenses, $3,600. The income tax rate is 30%. Required: 1. Complete the following rabulation for each situation, in Sizuations A and B (prices rising), assume the following beginning inventory, 310 units at $12=$3,720; purchases, 390 units at $14=$5,460. In situations C and D (prices falling), assume the opposite; that is, beginning inventory, 310 units at $14=$4,340; purchases, $90 units at $12=$4,680. Use periodic inventory procedures: 2. Combiete the following sentence Required 2 > Complete this question by entering your answers in the tabs below. Complete the following sentence: Complete this question by entering your answers in the tabs below. Complete the following sentence regarding the relative effects on the cash position for each situation. P7.4 (Algo) Evaluating the LIFO and FIFO Choice When Costs Are Rising and Falling LO7.2, 7.3 Income is to be evaluated under four different situations as foliows a. Prices are rising (7) Situation A. FIFO is used (2) Stuation B: LiFO is used b. Prices are falling (1) Situation C. FIFO is used (2) Situation D. LIFO is used. The basic data common to all four situations are sales, 540 units for $16,200, beginning inventory, 310 units, purchases, 390 units; ending inventory, 160 units; and operating expenses, $3,600. The income tax rate is 30%. Required: 1. Complete the following rabulation for each situation, in Sizuations A and B (prices rising), assume the following beginning inventory, 310 units at $12=$3,720; purchases, 390 units at $14=$5,460. In situations C and D (prices falling), assume the opposite; that is, beginning inventory, 310 units at $14=$4,340; purchases, $90 units at $12=$4,680. Use periodic inventory procedures: 2. Combiete the following sentence Required 2 > Complete this question by entering your answers in the tabs below. Complete the following sentence: Complete this question by entering your answers in the tabs below. Complete the following sentence regarding the relative effects on the cash position for each situation