Question
Please show how you got the answers Following is partial information for the income statement of Audio Solutions Company under three different inventory costing methods,
Please show how you got the answers
Following 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:
Please show how you got the answers
Required 1: Compute the cost of goods sold under the FIFO, LIFO, and average cost inventory costing methods. (Round intermediate calculations to 2 decimal places. Round your answers to the nearest whole dollar amount.)
Cost of goods sold | |||
Beginning inventory (385 units @ $26) | $10,010 | $10,010 | $10,010 |
Purchases (464 units @ $34) | 15,776 | 15,776 | 15,776 |
Goods available for sale | 25,786 | 25,786 | 25,786 |
Ending inventory (535 units ) | |||
Cost of goods sold |
Please show how you got the answers.
Required 2: Prepare an income statement through pretax income for each method. Sales, 314 units; unit sales price, $53; Expenses, $1,680
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Required 3
Rank the three methods in order of income taxes paid (favorable cash flow).
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