Thunder Company uses a periodic inventory system. Data for $2021$:

Beginning inventory

Purchases March

Purchases November

Sales for the year

Ending inventory $($per physical count$)$

Expenses

$1,700$

$7,800$

$1,900$

$2,000$

$9,400$

$$,196,000$

units

$($a$)$ $$38$

units

$($a$)$ $$42$

units

$($a$)543$

units

$($a$)S77$

Required:

Compute Cost of Goods Sold under FIFO, LIFO and average cost inventory costing methods.

Prepare income statement for each method.

WEIGHTED

COST OF GOODS SOLD

UNITS

FIFO

LIFO

AVERAGE

Beginning inventory

Purchases

Goods available for sale

Ending inventory

Cost of goods sold

WEIGHTED

INCOME STATEMENT

FIFO

LIFO

AVERAGE

Sales revenue

Cost of goods sold

Gross profit

Expenses

Net income