**Orlon Iron Corporation Inventory and Costing Analysis**Orlon Iron Corporation tracks the number of units purchased and sold throughout each year but applies its Inventory costing method at the end of the year, as it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31.**Transactions:**| Transactions | Units | Unit Cost ||--------------------------|-------|-----------|| a. Inventory, Beginning | 250 | $10 || **For the year:** | | || b. Purchase, April 11 | 600 | $12 || c. Purchase, June 1 | 480 | $12 || d. Sale, May 1 (sold for $45 per unit) | 250 | || e. Sale, July 3 (sold for $45 per unit)| 350 | || f. Operating expenses (excluding income tax expense) | | $18,000 |**Tasks:**1. Calculate the number and cost of goods 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 - (c) Weighted average cost4. Prepare an Income statement that shows under the FIFO method, LIFO method and weighted average method.5. Which inventory costing method minimizes income taxes?**Instructions:**- Complete this question by entering your answers in the tabs below.- **Required 1:** - Calculate the number and cost of goods available for sale. - **Inputs:** - Number of Goods Available for Sale: ______ units - Cost of Goods Available for Sale: ______- **Required 2:** - Proceed to next calculation step.(Note: Ensure to plug in the numbers in the blanks provided as per the calculation steps in your coursework or study module guidelines.)

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Answered: Orlon Iron Corporation tracks the…

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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