Problem 6-4A

Kimmel, Financial Accounting, de Help System Announcements Problem 6-4A The management of Metlock, Inc. asks your help in determining the comparative effects of the FIFO and LIFO inventory cost flow methods. For 2017, the accounting reca Inventory, January 1 (9,060 units) $ 29,898 Cost of 125,320 units purchased 463,784 Selling price of 105,410 units sold 736,400 Operating expenses 112.040 Units purchased consisted of 37,990 units at $3.50 on May 10: 61,670 units at $3.70 on August 15; and 25,660 units at $4.00 on November 20. Income taxes are 27%. (a) Prepare comparative condensed Income statements for 2017 under FIFO and LIFO. (Round answers to o decimal places, e.g. 5,125.) Metlack, Inc. Condensed Income Statements For the Year Ended December 31, 2017 FIFO LIFO 736400 736400 Cost of Goods Sold Beginning Inventory 29898 29898 Cost of Goods Purchased 463784 Cost of Goods Available for Sale 493682 493682 Less Ending Inventory Cost of Goods Sold Gross Profit Operating Expenses 112040 Income before Income Taxes Income Tax Expense