Scoresby Inc. 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		4,000		$	22
For the year:
b. Purchase, March 5		10,000			23
c. Purchase, September 19		6,000			25
d. Sale, April 15 (sold for $67 per unit)		4,300
e. Sale, October 31 (sold for $70 per unit)		9,000
f. Operating expenses (excluding income tax expense), $606,000

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

Number of Goods Available for Sale		units
Cost of Goods Available for Sale

2.	Calculate the number of units in ending inventory.

Ending Inventory

units

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

	Cost of Ending Inventory	Cost of Goods Sold
FIFO
LIFO
Weighted Average Cost

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

SCORESBY INC.
Income Statement
For the Year Ended December 31
	FIFO	LIFO	Weighted Average
Income (Loss) from Operations

6.	Which inventory costing method minimizes income taxes?

	Weighted Average Cost
	FIFO
	LIFO