Underwood Copy Centre Ltd. uses laser printers. The company started the year with 100 containers of ink. During the year, Underwood Copy Centre purchased 800 containers of at $10.20 each and sold 630 units for $23.00 each. The full question is shown below.
Underwood Copy Centre Lid. uses laser printers. The company started the year with 100 containers of ink (weighted-average cost of $9.40 each, FIFO cost of $9.10 each). During the year, Underwood Copy Centre purchased 800 containers of ink at $10.20 each and sold 630 units for $23.00 each. The company paid operating expenses throughout the year, a total of $3,200. Underwood Copy Centre's income statement-excluding the effects of income tax under each of the weighted-average-cost and FIFO inventory costing methods- is given. Underwood Copy Centre is a corporation subject to a 17% income tax. (Click the icon to view the income statement.) Compute Underwood Copy Centre's income tax expense under the weighted-average cost and FIFO inventory costing methods. Which method would you select to (a) maximize income before tax and (b) minimize income tax expense? Compute Underwood Copy Centre's income tax expense using the weighted-average-cost and FIFO inventory costing methods. (Round your answer to the nearest whole dollar.) Underwood Copy Centre Ltd. Income Statement i Income Statement - X For the Year Ended December 31, 2017 Weighted - Average Cost FIFO Underwood Copy Centre Ltd. Sales revenue $ 14,490 $ 14,490 Income Statement Cost of goods sold 6,369 6,316 For the Year Ended December 31, 2017 Gross profit $ 8, 121 $ 8, 174 Weighted- 3,200 3,200 Average cost FIFO Operating expenses Net income before tax $ 4,921 $ 4,974 Sales revenue $ 14,490 $ 14,490 Cost of goods sold 6,369 6,316 Income tax expense Gross profit $ 8, 121 $ 8, 174 Which method would you select to (a) maximize income before tax and (b) minimize income tax expense? Operating expenses 3,200 3,200 (a) The income before taxes is maximized by using the method of inventory costing. Net income before tax $ 4,921 $ 4,974 (b) The income taxes are minimized by using the method of inventory costing. Print DoneWhich method would you select to (a) maximize income before tax and (b) minimize income tax expense? (3) The income before taxes is maximized by using the I: method of inventory costing. (b) The income taxes are minimized by using the I FIFO ventory costing. weighted-average cost Which method would you select to (a) maximize income before tax and (b) minimize income tax expense? (a) The income before taxes is maximized by using the |:l method of inventory costing. (b) The income taxes are minimized by using the |:l method of inventory costing. FIFO weighted-average-cost Enter any number in the edit fields and then cm .u. luv .u u\": \"em WWW