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Daniel Company uses a periodic inventory system. Data for the current year: beginning merchandise inventory $($ending inventory December $31,$ prior year$),2,090$ units at $$36$; purchases, $8,000$ units at $$38$; expenses $($excluding income taxes$),$ $$193,300$; ending inventory per physical count at December $31,$ current year, $1,740$ units; sales, $8,350$ units; sales price per unit, $$78$; and average income tax rate, $30$ percent.

Required:

$1-$a$.$ Compute cost of goods sold under the FIFO, LIFO, and average cost inventory costing methods.

$1-$b$.$ Prepare income statements under the FIFO, LIFO, and average cost inventory costing methods.

$2.$ Between FIFO and LIFO, which method is preferable in terms of $($a$)$ net income and $($b$)$ income taxes paid $($cash flow$)?$

$3.$ Between FIFO and LIFO, which method is preferable in terms of $($a$)$ net income and $($b$)$ income taxes paid $($cash flow$),$ assuming that prices were falling?

Complete this question by entering your answers in the tabs below.

Req $1$ a

Req $1b$

Req $2$

Req $3$

Prepare income statements under the FIFO, LIFO, and aterage cost inventory costing methods.

Note: Do not round your intermediate calculations. Round your final answers to the nearest whole dollar amount. Use the COGS amount from Required $1$ a$.$

$\backslash$table$[[$Income Statement,FIFO,LIFO,Average Cost$],[$Sales Revenue,,,$],[$Cost of goods sold,,,$],[$Gross profit,,,$],[$Operating expenses,,,$],[$Pretax income,,,$],[$Income tax expense,,,$],[$Net income,,,$]]$

Req $1$a

Req $2$

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