Following is partial information for the income statement of Audio Solutions Company under three different inventory costing methods, assuming the use of a periodic inventory system: Required: 1. Compute cost of goods sold under the FIFO, LIFO, and average cost inventory costing methods. 2. Prepare an income statement through pretax income for each method. Sales, 320 units; unit sales price, $54; Expenses, $1,510 3. Rank the three methods in order of income taxes paid (favorable cash flow). Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute cost of goods sold under the FIFO, LIFO, and average cost inventory costing methods. Note: Round intermediate calculations to 2 decimal places. Round your answers to the nearest whole dollar FIFO Cost of goods sold Beginning inventory (381 units @ $26) Purchases (464 units @ $34) Goods available for sale Ending inventory (525 units) Cost of goods sold LIFO Average Cost $ 9,906 $ 9,906 $ 15,776 15,776 9,906 15,776

Following is partial information for the income statement of Audio Solutions Company under three different inventory costing methods, assuming the use of a periodic inventory system: Required: 1. Compute cost of goods sold under the FIFO, LIFO, and average cost inventory costing methods. 2. Prepare an income statement through pretax income for each method. Sales, 320 units; unit sales price, $54; Expenses, $1,510 3. Rank the three methods in order of income taxes paid (favorable cash flow). Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute cost of goods sold under the FIFO, LIFO, and average cost inventory costing methods. Note: Round intermediate calculations to 2 decimal places. Round your answers to the nearest whole dollar FIFO Cost of goods sold Beginning inventory (381 units @ $26) Purchases (464 units @ $34) Goods available for sale Ending inventory (525 units) Cost of goods sold LIFO Average Cost $ 9,906 $ 9,906 $ 15,776 15,776 9,906 15,776

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Description: Following is partial information for the income statement of Audio Solutions Company under threedifferent inventory costing methods, assuming the use of a periodic inventory system:Required:1. Compute cost of goods sold under the FIFO, LIFO, and ave

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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