Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. following is partial information for the income st

Following is partial information for the income statement of Audio Solutions Company under three different...

70.2K

Verified Solution

Question

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 Average Cost
Cost of goods sold
Beginning inventory (382 units @ $27) $10,314 $10,314 $10,314
Purchases (472 units @ $35) 16,520 16,520 16,520
Goods available for sale 26,834 26,834 26,834
Ending inventory (537 units )
Cost of goods sold

2. Prepare an income statement through pretax income for each method.

Sales, 317 units; unit sales price, $54; Expenses, $1,670

FIFO LIFO Average Cost
Sales revenue

Rank the three methods in order of income taxes paid (favorable cash flow).

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students