Scoresby Inc. tracks the number of units purchased and soldthroughout each year but applies its inventory costing method atthe end of the year, as if it uses a periodic inventory system.Assume its accounting records provided the following information atthe end of the annual accounting period, December 31.
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| Transactions | Units | Unit Cost |
| a. Inventory, Beginning | | 1,500 | | $ | 26 | |
| For the year: | | | | | | |
| b. Purchase, March 5 | | 7,500 | | | 27 | |
| c. Purchase, September 19 | | 3,500 | | | 29 | |
| d. Sale, April 15 (sold for $71 per unit) | | 2,300 | | | | |
| e. Sale, October 31 (sold for $74 per unit) | | 6,500 | | | | |
f. Operating expenses (excluding income tax expense),$402,000 Prepare an income statement that shows the FIFO method, LIFOmethod and weighted average method. | | | SCORESBY INC. | | Income Statement | | For the Year Ended December 31 | | FIFO | LIFO | Weighted Average | | | | | | | | | | | | | | | | | | | | | | Income (Loss) fromOperations | | | |
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