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Emily Company uses a periodic inventory system. At the end of the annual...

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Accounting

Emily Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 2:

Units Unit Cost
Inventory, December 31, prior year 2,890 $ 12
For the current year:
Purchase, April 11 8,860 13
Purchase, June 1 7,930 18
Sales ($55 each) 10,860
Operating expenses (excluding income tax expense) $ 191,500

Required:

1. Prepare a separate income statement through pretax income that details cost of goods sold for (a) Case A: FIFO and (b) Case B: LIFO.

EMILY COMPANY
Income Statement
For the Year Ended December 31, current year
Case A Case B
FIFO LIFO
Sales revenue $597,300 $597,300
Cost of goods sold:
Beginning inventory $34,680 $34,680
Purchases 257,920 257,920
Goods available for sale 292,600 292,600
Ending inventory 154,310 111,770
Cost of goods sold ? ?
Gross profit

?

 ?
Operating expenses ? ?
Pretax income ? ?

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