60.1K

Verified Solution

Link Copied!

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, 322 units; unit sales price, $53; Expenses, $1,520 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. (Round intermediate calculations to 2 decimal places. Round your answers to the nearest whole dollar amount.) FIFO LIFO Average Cost $ 10,088 $ 10,088 $ 10,088 15,844 15,844 15,844 Cost of goods sold Beginning inventory (388 units @ $26) Purchases (466 units @ $34) Goods available for sale Ending inventory (532 units) Cost of goods sold Required 1 Required 2 Required 3 Prepare an income statement through pretax income for each method. Sales, 322 units; unit sales price, $53; Expenses, $1,520 FIFO LIFO Average Cost Required 1 Required 2 Required 3 Rank the three methods in order of income taxes paid (favorable cash flow). FIFO LIFO Average cost

Answer & Explanation Solved by verified expert

See Answer