P6-72B (Learning Objective 2, 3: Applying the different inventory costing methodswrit perpetual system) The records...
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P6-72B (Learning Objective 2, 3: Applying the different inventory costing methodswrit perpetual system) The records of Buzz Aviation include the following accounts for inventory of aviation fuel at December 31 of the current year: Inventory Jan 1 Balance 730 units @ 7.60 5,548 ar 6 Purchase 310 units@ 7.70 2,387 Jun 22 Purchase 8,370 units @ 8.10 67,797 Oct 4 Purchase 520 units @ 9.10 4,732 Sales Revenue Dec 31 9,030 units 128,226 I Requirements 1. Prepare a partial income statement through gross profit under the average, FIFO, and LIFO methods. Round average cost per unit to four decimal places and all other amounts to the nearest whole dollar 2. Which inventory method would you use to minimize income tax? Explain wh this method causes income tax to be the lowest
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