[The following information applies to the questions displayed below.] Broadhead Company uses a periodic inventory...
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[The following information applies to the questions displayed below.] Broadhead Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 2: Units 2,980 Unit Cost $ 13 Inventory, December 31, prior year For the current year: Purchase, April 11 Purchase, June 1 Sales ($52 each) Operating expenses (excluding income tax expense) 8,930 7,970 10,930 11 16 $186,000 Required: 1. Prepare a separate income statement through pretax income that details cost of goods sold for (a) Case A: FIFO and (b) Case B: LIFO. BROADHEAD COMPANY Income Statement For the Year Ended December 31, current year Case A Case B FIFO LIFO Sales revenue $ 568,360 $ 568,360 Cost of goods sold: Beginning inventory Purchases $ 38,740 $ 38,740 225,750 225,750 Goods available for sale 264,490 264,490 Ending inventory 104,410 Cost of goods sold Gross profit Operating expenses 160,080 408,280 Pretax income
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