8 Courtney Company uses a periodic inventory system. Data for 2020 are as follows: beginning...
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8 Courtney Company uses a periodic inventory system. Data for 2020 are as follows: beginning merchandise inventory (December 31, 2019), 3,200 units at $35.40; purchases, 12,400 units at $38.40; operating expenses (excluding income taxes), $215,000; ending inventory per physical count at December 31, 2020, 3,000 units; sales price per unit, $70.20; and average income tax rate, 30 percent. 40 points Required: 1. Prepare statements of earnings under the FIFO and weighted average costing methods. (Round intermediate calculations to 2 decimal places and final answers to the nearest whole dollar.) % 01:21:47 Statement of Earnings (Partial) Inventory Costing Method Units FIFO Weighted Average Sales revenue Cost of sales: Beginning inventory Purchases Cost of goods available for sale Ending inventory Cost of sales Gross profit Expenses (operating) Pretax earings Inco tax expense Net earnings 2-a. Which method, FIFO or weighted-average cost, is preferable in terms of net earnings? O FIFO O Weighted average cost 2-b. Which method, FIFO or weighted average cost, is preferable in terms of cash flow? O FIFO Weighted-average cost
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