vaibhavSubject-Accounting Emily Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, theaccounting records provided the following information for product 2:Units2,930$191,000Inventory, December 31, prior yearFor the current year:Purchase, April 11Purchase, June 11Sales ($58 each)Operating expenses (excluding income tax expense)Required:1. Prepare a separate income statement through pretax income that details cost of goods sold for (a) Case A: FIFO and (b) Case BLIFOUnit Cost$ 118,8808,00010,88012172. Compute the difference between the pretax income and the ending inventory amount for the two cases3. Which inventory costing method may be preferred for income tax purposes? Sales revenueCost of goods sold:Beginning inventoryPurchasesPurchasesGoods available for saleEnding inventoryCost of goods soldGross profitOperating expensesPretax incomeEMILY COMPANYIncome StatementFor the Year Ended December 31, current yearCase AFIFO32,230106,560 X136,000274,790$ 631,040127,630503,410191,000$ 312,410$Case BLIFO32,230106,560136,000274,790$631,040170,560503,410191,000$ 269,480

Name: vaibhavSubject-Accounting Emily Company uses a periodic inventory syst
Uploaded: 2024-03-20T06:32:37.000Z
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Description: vaibhavSubject-Accounting Emily Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, theaccounting records provided the following information for product 2:Units2,930$191,000Inventory,