Required information

Skip to question

[The following information applies to the questions displayed below.]

Daniel Company uses a periodic inventory system. Data for the current year: beginning merchandise inventory (ending inventory December 31, prior year), 2,020 units at $36; purchases, 7,810 units at $38; expenses (excluding income taxes), $193,500; ending inventory per physical count at December 31, current year, 1,780 units; sales, 8,050 units; sales price per unit, $78; and average income tax rate, 32 percent.

Required:

1-a. Compute cost of goods sold under the FIFO, LIFO, and average cost inventory costing methods.

1-b. Prepare income statements under the FIFO, LIFO, and average cost inventory costing methods.