In: Accounting
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).