Question
The records of Bryan Aviation include the following accounts for inventory of aviation fuel at December 31 of the current year: Inventory Jan 1 balance
The records of Bryan Aviation include the following accounts for inventory of aviation fuel at December 31 of the current year:
Inventory
Jan 1 balance 740 units @ $7.50 5,550 Mar 6 purchase 320 units @ $7.80 2,496 Jun 22 purchase 8,380 units @ $8.10 67,878 Oct 4 purchase 530 units @ $9.10 4,823 |
|
Sales revenue
| Dec 31 9,030 units 128,226 |
Requirements
1. Prepare a partial Income Statement through gross profit under the average, FIFO, and LIFO
methods. Round average cost per unit to four decimal places and all other amounts to the
nearest whole dollar. step by step
2. Which inventory method would you use to minimize income tax? Explain why this method
causes income tax to be the lowest.
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