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1 Required information [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 2.960 Unic Cott $13 Inventory. December 31. prior year For the current year Purchase. April 11 Purchase June 1 Sales ($55 each) Operating expenses (excluding income tax expende) 8.340 7.440 10, 980 14 19 $136.000 Required: 1. Prepare a separate income statement through pretax income that details cost of goods sold for (a) Case A FIFO and (6) Case B LIFO EMILY COMPANY Income Statement For the Year Ended December 31, current year Case A FIFO Case B LIFO Cost of goods sold Goods available for sale 0 0 Cost of goods sold D Required information [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 Unita 2.950 Unit Coat $13 Inventory. December 31. prior year For the current year Purchase. April 11 Purchase. June 1 Sales (555 each) Operating expenses (excluding income tax expense) 8. 840 7.940 10.990 14 19 $186.000 2. Compute the difference between the pretax income and the ending inventory amount for the two cases. Comparison of Amounts Case A Case B FIFO LIFO Difference Pretax income Ending Inventory Required information 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 Unita 2,950 Unit Cost $13 Inventory, December 31. prior year For the current year Purchase. April 11 Purchase. June Sales ($55 each) Operating expenses (excluding income tax expense) 8,840 7.940 10,980 19 $186.000 3. Which inventory costing method may be preferred for income tax purposes? Which inventory costing method may be preferred for income tax purposes

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