Orion Iron Corp. tracks the number of units purchased and sold throughout each year but applies...

Transactions	Units		Unit Cost
a. Inventory, Beginning		400	$	15
For the year:
b. Purchase, April 11		850		13
c. Purchase, June 1		750		17
d. Sale, May 1 (sold for $43 per unit)		400
e. Sale, July 3 (sold for $43 per unit)		510
f. Operating expenses (excluding income tax expense), $18,900

Required:

1. Calculate the number and cost of goods available for sale.
2. Calculate the number of units in ending inventory.
3. Compute the cost of ending inventory and cost of goods sold under (a) FIFO, (b) LIFO, and (c) weighted average cost.
4. Prepare an income statement that shows under the FIFO method, LIFO method and weighted average method.
6. Which inventory costing method minimizes income taxes?

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Expert Solution

ekkarill92 answered 1 year ago

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