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  3. courtney company uses a periodic inventory system.

Courtney Company uses a periodic inventory system. Data for 2020 are as follows: beginning merchandise...

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Accounting

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Courtney Company uses a periodic inventory system. Data for 2020 are as follows: beginning merchandise inventory (December 31, 2019), 3,550 units at $36.10; purchases, 13,100 units at $39.40; operating expenses (excluding income taxes). $218,500; ending inventory per physical count at December 31, 2020, 3,400 units soles price per unit, $70,90; and average Income tax rate, 40 percent Required: 1. Prepare statements of earnings under the FIFO and weighted average costing methods. (Round intermediate calculations to 2 decimal places and final answers to the nearest whole dollar.) Statement of Earnings (Partial) Inventory Costing Method Units FIFO Weighted Average Sales revenue Cost of sales: Beginning inventory Purchases Cost of goods available for sale 0 0 0 Ending inventory Cost of sales 0 0 0 Gross profit 0 0 Expenses (operating) Pretax earnings 0 0 Income tax expense Net earnings $ 0 $ 0 2-a. Which method, FIFO or weighted-average cost, is preferable in terms of net earnings? FIFO O Weighted average cost 2-b. Which method, FIFO or weighted average cost, is preferable in terms of cash flow? O FIFO Weighted average cost

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