Scoresby Incorporated 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 $1,500$ $ $28$

For the year:

b$.$ Purchase, March $57,50029$

c$.$ Purchase, September $193,50031$

d$.$ Sale, April $15($sold for $$73$ per unit$)2,200$

e$.$ Sale, October $31($sold for $$76$ per unit$)6,500$

f$.$ Operating expenses $($excluding income tax expense$),$ $$398,000$

Required:

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

$2.$ Calculate the number of units in ending inventory.

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

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

$6.$ Which inventory costing method minimizes income taxes?

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

$7.$ Cost of Ending

Inventory Cost of Goods

Sold

FIFO

LIFO

Weighted Average Cost