Following is partial information for the income statement of Audio Solutions Company under three different...
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Accounting
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. (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 (382 units @ $27)
$10,314
$10,314
$10,314
Purchases (472 units @ $35)
16,520
16,520
16,520
Goods available for sale
26,834
26,834
26,834
Ending inventory (537 units )
Cost of goods sold
2. Prepare an income statement through pretax income for each method.
Sales, 317 units; unit sales price, $54; Expenses, $1,670
FIFO
LIFO
Average Cost
Sales revenue
Rank the three methods in order of income taxes paid (favorable cash flow).
Answer & Explanation
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