Courtney Company employs a periodic inventory system. The relevant data includes the following: - Beginning inventory: 2,400 units at $25 each- Purchases: 5,100 units at $30 each- Operating expenses (excluding income taxes): $98,500- Ending inventory (physical count as of December 31): 1,450 units- Sales price per unit: $60- Average income tax rate: 30%**Requirement:**1. Prepare income statements using the FIFO, LIFO, and weighted average costing methods. Ensure not to round intermediate calculations. Final answers should be rounded to the nearest dollar amount.**Inventory Costing Method Table:**| **Income Statement** | **Units** | **FIFO** | **LIFO** | **Weighted Average** ||----------------------------|-----------|----------|----------|----------------------|| Sales Revenue | | | | || Cost of Goods Sold* | 126,000 | | | || Gross Profit | 0 | 0 | 0 | || Operating Expenses | | | | || Income from Operations | 0 | 0 | 0 | || Income Tax Expense | | | | || Net Income | $0 | $0 | $0 | |**Cost of Goods Sold Equation:**| **Units** | **FIFO** | **LIFO** | **Weighted Average** ||----------------------------|----------|----------|----------------------|| Beginning Inventory | 60,000 | | || Purchases | 153,000 | | || Goods Available for Sale | 213,000 | | || Ending Inventory | 87,000 | | || Cost of Goods Sold | 126,000 | | |- The values for "LIFO" and "Weighted Average" methods are not filled in the table.- A detailed explanation of each method is needed for completion.

Name: Courtney Company employs a periodic inventory system. The relevant da
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Description: Courtney Company employs a periodic inventory system. The relevant data includes the following: - Beginning inventory: 2,400 units at $25 each- Purchases: 5,100 units at $30 each- Operating expenses (excluding income taxes): $98,500- Ending inventor

FIFO: First In, First Out, commonly known as FIFO, is an asset-management and valuation method in…

Business

Accounting

Courtney Company uses a periodic inventory system. The following data were available: beginning inventory, 2,400 units at $25; purchases, 5,100 units at $30; operating expenses (excluding income taxes), $98,500; ending inventory per physical count at December 31, 1,450 units; sales price per unit, $60; and average income tax rate, 30%. Required: 1. Prepare income statements under the FIIFO, LIFO, and weighted average costing methods. (Do not round intermediate calculations. Round your final answers to the nearest dollar amount.) Inventory Costing Method Weighted Average Income Statement Units FIFO LIFO Sales Revenue Cost of Goods Sold* 126,000 Gross Profit Operating Expenses Income from Operations Income Tax Expense Net Income $ 0 $ 2$ Weighted Average Units FIFO LIFO *Cost of Goods Sold Equation: Beginning Inventory 60,000 Purchases 153,000 Goods Available for Sale 213,000 Ending Inventory 87,000 Cost of Goods Sold 126,000 $ $ 2$

Courtney Company uses a periodic inventory system. The following data were available: beginning inventory, 2,400 units at $25; purchases, 5,100 units at $30; operating expenses (excluding income taxes), $98,500; ending inventory per physical count at December 31, 1,450 units; sales price per unit, $60; and average income tax rate, 30%. Required: 1. Prepare income statements under the FIIFO, LIFO, and weighted average costing methods. (Do not round intermediate calculations. Round your final answers to the nearest dollar amount.) Inventory Costing Method Weighted Average Income Statement Units FIFO LIFO Sales Revenue Cost of Goods Sold* 126,000 Gross Profit Operating Expenses Income from Operations Income Tax Expense Net Income $ 0 $ 2$ Weighted Average Units FIFO LIFO *Cost of Goods Sold Equation: Beginning Inventory 60,000 Purchases 153,000 Goods Available for Sale 213,000 Ending Inventory 87,000 Cost of Goods Sold 126,000 $ $ 2$

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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