only typed solution E7-8 (Algo) Analyzing and Interpreting the Financial Statement Effects of Periodic FIFO,LIFO, and Weighted Average Cost [LO 7-3] Orion Iron Corporation tracks the number ofunits purchased and sold throughout each year but applies its inventory costing methodat the end of the year, as if it uses a periodic inventory system. Assume its accountingrecords provided the following information at the end of the annual accounting period,December 31. Transactions Units Unit Cost a. Inventory, Beginning 400 $ 15 For theyear: b. Purchase, April 11 850 13 c. Purchase, June 1 750 17 d. Sale, May 1 (sold for $43 per unit) 400 e. Sale, July 3 (sold for $43 per unit) 510 f. Operating expenses (excluding income tax expense), $18,900 Required: 1. Calculate the number and cost ofgoods available for sale. 2. Calculate the number of units in ending inventory. 3.Compute the cost of ending inventory and cost of goods sold under (a) FIFO, (b) LIFO,and (c) weighted average cost. 4. Prepare an income statement that shows under theFIFO method, LIFO method and weighted average method. 6. Which inventory costingmethod minimizes income taxes?

Name: only typed solution E7-8 (Algo) Analyzing and Interpreting the Financi
Uploaded: 2024-03-20T06:32:37.000Z
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Description: only typed solution E7-8 (Algo) Analyzing and Interpreting the Financial Statement Effects of Periodic FIFO,LIFO, and Weighted Average Cost [LO 7-3] Orion Iron Corporation tracks the number ofunits purchased and sold throughout each year but applies