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Scoresby Incorporated tracks the number of units purchased and sold throughout each year but applies its inventory costing method at the end of the year as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31.

Transactions	Units	Unit Cost
a. Inventory, Beginning	1,500	$ 22
For the year:
b. Purchase, March 5	7,500	23
c. Purchase, September 19	3,500	25
d. Sale, April 15 (sold for $67 per unit)	2,300
e. Sale, October 31 (sold for $70 per unit)	6,500
f. Operating expenses (excluding income tax expense), $402,000

1. Calculate the number and cost of goods available for sale.

Numbers of Goods Available for Sale	__________	units
Cost of Goods Available for Sale	__________

2. Calculate the number of units in ending inventory.

Ending Inventory

______

units

3. Compute the cost of ending inventory and cost of goods sold under (a) FIFO, (b) LIFO, and (c) weighted average cost.

	Cost of Ending Inventory	Cost of Goods Sold
FIFO
LIFO
Weighted Average Cost

4. Prepare an income statement that shows the FIFO method, LIFO method, and weighted average method.

	SCORESBY INCORPORATED Income Statement For the Year Ended December 31 FIFO LIFO Weighted Average Income (Loss) from Operations

6. Which inventory costing method minimizes income taxes?

A) FIFO

B) LIFO

C) Weighted Average

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