The following information applies to the questions displayed below. Broadhead Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 2: unts Un Cost Inventory, December 31, or you 2,040 $11 For the current Purchase, April Purchase, Jurat 2960 Sau 57 each 0.00 Operating experies excluding income tax expense) S86000 9 14 3. 100 points Required: 1. Prepare a separate income statement through pretax income that cetails cost of goods sold for (a) Casc A FIFO and (b) Case :LIFO. BROADHEAD COMPANY Income Statement For the Year Ended December 31, current year Case A FIFO 19 Case B LIFO Sales revenue Cost of goods sold Beginning inventory Purchases Goods available for sale 0 Cost of goods sold References eBook & Resources Worksheet Leaming Objective: 07-02 Report inventory and cost of goods sold using the four inventory costing methods. Difficulty: 3 Hard Leaming Objective: 07-03 Decide when the use of different inventory costing methods is beneficial to a company Check my work 4. 100 points 2. Compute the difference between the pretax income and the ending inventory amount for the two cases. Comparison of Amounts Case A Cases FIFO LIFO Difference Pretax income Ending inventory References eBook & Resources Worksheet Leaming Objective: 07-02 Report inventory and cost of goods sold using the four inventory costing methods. Difficulty: 3 Hard Leaming Objective: 07-03 Decide when the use of different inventory costing methods is beneficial to a company Check my work 5. 100 points 3. Which inventory costing method may be preferred for income tax purposes? O FIFO OLFO References eBook & Resources Worksheet Leaming Objective: 07.02 Report Inventory and cost of goods sold using the four inventory costing methods. Difficulty: 3 Hard Leaming Objective: 07-03 Decide when the use of different inventory costing methods is beneficial to a company Check my work The following information applies to the questions displayed below. Broadhead Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 2: unts Un Cost Inventory, December 31, or you 2,040 $11 For the current Purchase, April Purchase, Jurat 2960 Sau 57 each 0.00 Operating experies excluding income tax expense) S86000 9 14 3. 100 points Required: 1. Prepare a separate income statement through pretax income that cetails cost of goods sold for (a) Casc A FIFO and (b) Case :LIFO. BROADHEAD COMPANY Income Statement For the Year Ended December 31, current year Case A FIFO 19 Case B LIFO Sales revenue Cost of goods sold Beginning inventory Purchases Goods available for sale 0 Cost of goods sold References eBook & Resources Worksheet Leaming Objective: 07-02 Report inventory and cost of goods sold using the four inventory costing methods. Difficulty: 3 Hard Leaming Objective: 07-03 Decide when the use of different inventory costing methods is beneficial to a company Check my work 4. 100 points 2. Compute the difference between the pretax income and the ending inventory amount for the two cases. Comparison of Amounts Case A Cases FIFO LIFO Difference Pretax income Ending inventory References eBook & Resources Worksheet Leaming Objective: 07-02 Report inventory and cost of goods sold using the four inventory costing methods. Difficulty: 3 Hard Leaming Objective: 07-03 Decide when the use of different inventory costing methods is beneficial to a company Check my work 5. 100 points 3. Which inventory costing method may be preferred for income tax purposes? O FIFO OLFO References eBook & Resources Worksheet Leaming Objective: 07.02 Report Inventory and cost of goods sold using the four inventory costing methods. Difficulty: 3 Hard Leaming Objective: 07-03 Decide when the use of different inventory costing methods is beneficial to a company Check my work