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Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method perpetually at the time of each sale, as if it uses perpetual inventory system. Assume Oahu Kiki's records show the following for the month of January. The company sold 240 units between January 16 and 23. Beginning Inventory Purchase Purchase Date January 1 January 15 January 24 Units Unit Cost Total Cost 120 $ 80 $ 9,600 380 90 34,200 200 110 22,000 Required: Calculate the cost of ending inventory and the cost of goods sold using the FIFO and LIFO methods. FIFO 45,500 $ Cost of Ending Inventory Cost of Goods Sold $ $ LIFO 44,200 21,600 $ 20,400 Units 300 Cost $12 Transactions a. Inventory, Beginning For the year: b. Purchase, April 11 c. Purchase, June 1 d. Sale, May 1 (sold for $40 per unit) e. Sale, July 3 (sold for $40 per unit) f. Operating expenses (excluding income tax expense), $19,500 10 13 900 800 300 600 Required: 1. Calculate the number and cost of goods available for sale. 2. Calculate the number of units in ending inventory. 3. Compute the cost of ending inventory and cost of goods sold under (a) FIFO, (b) LIFO, and (c) weighted average cost. 4. Prepare an income statement that shows under the FIFO method, LIFO method and weighted average method. 6. Which inventory costing method minimizes income taxes? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 6 Prepare an Income Statement that shows under the FIFO method, LIFO method and weighted average method. ORION IRON CORP. Income Statement For the Year Ended December 31 FIFO LIFO Weighted Average $ 38,760 $ 38,760 $ 38,760 (9,160) (10,960) (10,098) 29,600 27,800 28,662 (19,000) (19,000) (19,000) Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Income from operations $ 10,600 $ 8,800 $ 9,662

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