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Income is to be evaluated under four different situations as follows:

a. Prices are rising:

(1) Situation A: FIFO is used.

(2) Situation B: LIFO is used.

b. Prices are falling:

(1) Situation C: FIFO is used.

(2) Situation D: LIFO is used.

The basic data common to all four situations are: sales, 516 units for $19,092; beginning inventory, 287 units; purchases, 390 units; ending inventory, 161 units; and operating expenses, $3,100. The income tax rate is 40%.

Required 1. Complete the following tabulation for each situation in situations A and B prices rising assume the following: beginning inventory, 287 units at $9 = $2.583, purchases, 390 units at $10 = $3.900 in Situations C and D (prices falling), assume the opposite, that is, beginning inventory, 287 units at $10-$2,870 purchases. 390 units at $9 = $3.510. Use periodic inventory procedures (Round your answers to nearest dollar amount.) PRICES RISING PRICES FALLING Situation A Situation B Situation C FIFO Situation D FIFO LIFO LIFO Sales revenue Cost of goods sold Beginning inventory Purchases Goods available for sale Ending inventory Cost of goods sold Gross proft Expenses Pretax income Income tax expense Net income 9,092 $19,092 19,092 S 19.092 2,583 3,900 6,483 1,610 4,873 14,219 3,100 11,119 4,448 6,671 3,100 3,100 3,100

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