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Folowing is portal information for the income statement of Audio Solutions Company under three different inventory costing methods, assuming the use of a periodic inventory ayole Required: 1. Compute cost of goods sold under the FIFO, LIFO, and average cost inventory costing methods. (Round Intermediate calculations to 2 decima praca ons to the nearest whole dollar amount.) FOLFO Cost of goods sold Beginning inventory (394 Purchases (462 @ $34) 120) 10.244 $ 10.244 $ 10.244 Ending inventory units) 2. Prepare an income statement through pretex Income for each method Sales, 323 units unit ses price, 553, Expenses. $1,580 FOO Following is partial information for the income statement of Arturo Technologies 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. (Do not round intermediate calculations.) FIFO L IFO Average $ 24,000 $ $ 24,000 24.000 18,000 Cost of goods sold Beginning inventory (600 units @ $40) Purchases (600 units @ $30) Goods available for sale Ending inventory (700 units) Cost of goods sold 2. Prepare an income statement through pretax income for each method Sales, 500 units; unit sales price, 500, Expenses, $1,200 FIFO L IFO 3. Rank the three methods in order of preference based on income taxes paid (favorable cash flow). FIFO LIFO Average Cost

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