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Required information (The following information applies to the questions displayed below.) Emily Company uses a...

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Accounting

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Required information (The following information applies to the questions displayed below.) 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 $ 12 2,980 Inventory, December 31, prior year For the current year: Purchase, April 11 Purchase, June 1 Sales ($53 each) Operating expenses (excluding income tax expense) 8,930 7,900 10,850 13 18 $ 194,000 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 EMILY COMPANY Income Statement For the Year Ended December 31, current year Case A Case B FIFO LIFO Cost of goods sold: Beginning inventory Purchases $ $ 35,760 35,760 258,290 258,290 Goods available for sale 294,050 294,050 436,980 Ending inventory 138,070 180,550 Cost of goods sold Gross profit Operating expenses 194,000 194,000 Pretax income

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