The management of Wildhorse Co., SA is reevaluating the appropriateness of using its present inventory cost flow method. They request your help in determining the results of operations for 2017 if either the FIFO method or the average-cost method had been used. For 2017, the accounting records show the following data. Inventories Purchases and Sales Beginning (10,500 units) 22,200 Total net sales (236,250 units) 908,250 Ending (15,750 units) Total cost of goods purchased (241,500 units) 537,390 Purchases were made quarterly as follows. Quarter Units Unit Cost Total Cost 1 63,000 2.01 126,630 2 52,500 2.21 116,025 3 52,500 2.31 121,275 4 73,500 2.36 173,460 241,500 537,390 Operating expenses were 146,700, and the companys income tax rate is 33%. Prepare comparative condensed income statements for 2017 under FIFO and average-cost.

Question 11 The management of Wildhorse Co., SA is reevaluating the appropriateness of using its present inventory cost flow method. They request your help in determining the results of operations for 2017 if either the FIFO method or the average-cost method had been used. For 2017, the accounting records show the following data. Inventories Beginning (10,500 units) Ending (15,750 units) 22,200 Purchases and Sales Total net sales (236,250 units) Total cost of goods purchased (241,500 units) 908,250 537,390 Purchases were made quarterly as follows. Quarter 1 2 Units 63,000 52,500 52,500 73,500 241,500 Unit Cost 2.01 2.21 2.31 2.36 Total Cost 126,630 116,025 121,275 173,460 537,390 3 4 Operating expenses were 146,700, and the company's income tax rate is 33%. Prepare comparative condensed income statements for 2017 under FIFO and average-cost. (Round per unit cost to 3 decimal places, e.g. 15.125 and final answers to 0 decimal places, e.g. 125.) WILDHORSE CO., SA Condensed Income Statement V FIFO Average-cost Beginning Inventory Cost of Goods Available for Sale Cost of Goods Purchased Cost of Goods Sold Dividends Ending Inventory Gross Profit Income before Income Taxes Income Tax Expense Net Income / (Loss) Operating Expenses Retained Earnings , January 1 Retained Earnings , December 31 Sales Revenues Total Expenses Total Sales Revenues