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: Compute cost of goods sold under the FIFO, LIFO, and average cost inventory costing methods. Prepare an income statement through pretax income for each method. Sales, 323 units; unit sales price, $51; Expenses, $1,640 Rank the three methods in order of income taxes paid (favorable cash flow). • Required 1 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 amount. FIFO LIFO Average Cost Cost of goods sold Beginning inventory (388 units @ $27) $10,476 $10,476 $10,476 Purchases (469 units @ $35) 16,415 16,415 16,415 Goods available for sale Ending inventory (534 units) Cost of goods sold Required 2 Prepare an income statement through pretax income for each method. Sales, 323 units; unit sales price, $51; Expenses, $1,640 Note: Use the COGS amount from Required 1. FIFO LIFO Average Cost Required 3 Rank the three methods in order of income taxes paid (favorable cash flow).
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: Compute cost of goods sold under the FIFO, LIFO, and average cost inventory costing methods. Prepare an income statement through pretax income for each method. Sales, 323 units; unit sales price, $51; Expenses, $1,640 Rank the three methods in order of income taxes paid (favorable cash flow). • Required 1 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 amount. FIFO LIFO Average Cost Cost of goods sold Beginning inventory (388 units @ $27) $10,476 $10,476 $10,476 Purchases (469 units @ $35) 16,415 16,415 16,415 Goods available for sale Ending inventory (534 units) Cost of goods sold Required 2 Prepare an income statement through pretax income for each method. Sales, 323 units; unit sales price, $51; Expenses, $1,640 Note: Use the COGS amount from Required 1. FIFO LIFO Average Cost Required 3 Rank the three methods in order of income taxes paid (favorable cash flow).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
A 193.
Transcribed Image Text: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:
Compute cost of goods sold under the FIFO, LIFO, and average cost inventory costing methods.
Prepare an income statement through pretax income for each method.
Sales, 323 units; unit sales price, $51; Expenses, $1,640
Rank the three methods in order of income taxes paid (favorable cash flow).
• Required 1
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 amount.
Cost of goods sold
Beginning inventory (388 units @ $27) $10,476 $10,476 $10,476
Purchases (469 units @ $35)
16,415 16,415 16,415
Goods available for sale
Ending inventory (534 units)
Cost of goods sold
Required 2
Prepare an income statement through pretax income for each method.
Sales, 323 units; unit sales price, $51; Expenses, $1,640
Note: Use the COGS amount from Required 1.
FIFO LIFO Average Cost
FIFO LIFO Average Cost
Required 3
Rank the three methods in order of income taxes paid (favorable cash flow).
FIFO
LIFO
Average cost
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