Following is partial information for the income statement of Audio Solutions Company under three different inventory...

Following is partial information for the income statement of Audio Solutions Company under three different inventory costing methods, assuming the use of a periodic inventory system:

Required:

1. Compute cost of goods sold under the FIFO, LIFO, and average cost inventory costing methods. (Round intermediate calculations to 2 decimal places. Round your answers to the nearest whole dollar amount.)

	FIFO	LIFO	AVF COST
BEGINING INVENTORY (395 UNITS @ $27)	$10665	$10665	$10665
PURCHASES (469UNITS @ $ 35)	16415	16415	16415

2. Prepare an income statement through pretax income for each method.

Sales, 328 units; unit sales price, $53; Expenses, $1,640

3. Rank the three methods in order of income taxes paid (favorable cash flow).

Solutions

Expert Solution

ekkarill92 answered 9 months ago

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