[The following information applies to the questions displayed below.] Emily Company uses a periodic inventory...
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[The following information applies to the questions displayed below.] Emily 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 $14 Inventory, December 31, prior year For the current year: Purchase, April 11 Purchase, June 1 Sales ($53 each) Operating expenses (excluding income tax expense) 8,980 7,990 18,958 15 20 $187,500 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. EMILY COMPANY Income Statement For the Year Ended December 31, current year Case A Case B FIFO LIFO S S 580,350 580,350 Sales revenue Cost of goods sold: Beginning inventory Purchases S S 40,600 293,300 40,600 293,300 Goods available for sale Ending inventory 333,900 150.800 333,900 130,600 Cost of goods sold Gross profit Operating expenses 187.500 187,500 Pretax income
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