Beck Inc. uses a periodic inventory system. At the end of the annual accounting period, December...

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Accounting

Beck Inc. uses a periodic inventory system. At the end of theannual accounting period, December 31 of the current year, theaccounting records provided the following information for product2:
Units Unit Cost
Inventory, December 31, prior year 7,000 $ 11
For the current year:
Purchase, March 5 19,000 9
Purchase, September 19 10,000 5
Sale ($28 each) 8,000
Sale ($30 each) 16,000
Operating expenses (excluding income tax expense) $ 400,000
1. Prepare a separate income statement throughpretax income that details cost of goods sold for (a) CaseA: FIFO and (b) Case B: LIFO. (Loss amounts shouldbe indicated with a minus sign.)
2. Compute the difference between the pretaxincome and the ending inventory amounts for the two cases.

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Calculate Total Sales Sales8000units2816000units30 224000480000 704000 Calculations of Cost of Goods Sold and Ending Inventory under FIFO Date Total Available Cost of Goods Sold Ending Inventory December 31 7000units1177000 7000units1177000 March 5 19000units9171000 17000units9153000 2000units918000 September 19 See Answer

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			Units		Unit Cost
Inventory, December 31, prior year				7,000		$	11
For the current year:
Purchase, March 5				19,000			9
Purchase, September 19				10,000			5
Sale ($28 each)				8,000
Sale ($30 each)				16,000
Operating expenses (excluding income tax expense)	$	400,000