M4_AssignmentInstructions

Prepare T-accounts for each inventory account, Manufacturing Overhead, and Cost of Goods Sold. Post relevant data from your journal entries to these T-accounts (don’t forget to enter the beginning balances in your inventory accounts). Prepare an income statement. All of the information needed for the income statement is available in the journal entries and T-accounts you have prepared.

Please explain how to calculate the FIFO and LIFO for the below problem and to prepare the income statement for the FIFO, LIFO and Average cost.Problem: Nittany 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 1:     Units Unit Cost Inventory, December 31, prior year 1,990   $ 4   For the current year:           Purchase, March 21 5,130     6   Purchase, August 1 2,920     7     Inventory, December 31, current year 4,050             Required: Compute ending inventory and cost of goods sold for the current year under FIFO, LIFO, and average cost inventory costing methods. (Round "Average cost per unit" to 2 decimal places and final answers to nearest whole dollar amount.)   My calculations are below.      Units Cost Per Unit Total Cost FIFO LIFO Average Cost Beginning inventory 1990 $                 4 $…

please answer this with must explanation , computation for each part and steps in detail answer in text form

Required information [The following information applies to the questions displayed below.] Givoly Inc. 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: Units Unit Cost 6,500 $ 11 Inventory, December 31, prior year For the current year: Purchase, March 5 Purchase, September 19 Sale ($28 each) Sale ($30 each) Operating expenses (excluding income tax expense) 18,500 9,500 8,300 15,500 $395,000 2. Compute the difference between the pretax income and the ending inventory amounts for the two cases. Comparison of Amounts Case A Case B FIFO LIFO Difference Pretax income Ending inventory