Daniel Company uses a periodic inventory system. Data for 2015: beginning merchandise inventory (December 31, 2014), 2,080 units at $36; purchases, 7,960 units at $38; expenses (excluding income taxes), $192,700; ending inventory per physical count at December 31, 2015, 1,730; sales, 8,310 units; sales price per unit, $76; and average income tax rate, 34 percent

Compute cost of goods sold and prepare income statements under the FIFO, LIFO, and average cost inventory costing methods. (Do not round your intermediate calculations.)

Inventory Costing Method Cost of Goods Sold Units FIFO LIFO Average Cost Beginning inventory 2,080 $74,880 $74,880 $74,880 Purchases 7,960 302,480 302,480 302,480 Goods available for sale 10,040 377,360 377,360 377,360 Ending inventory 1,730 65,740 62,280 Cost of goods sold 8,310 $311,620 $315,080

	Income Statement FIFO LIFO Average Cost

Between FIFO and LIFO, which method is preferable in terms of (a) net income and (b) income taxes paid (cash flow)?

	Net income Income taxes paid