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The management of Pharoah Inc. is reevaluating the appropriateness of using its present inventory cost flow method, which is average-cost. The company requests your help in determining the results of operations for 2027 if either the FIFO or the LIFO method had been used. For 2027, the accounting records show these data: Beginning (11,200 units) Ending (27,200 units) Quarter Purchases were made quarterly as follows. 1 2 Inventories 3 4 Units 80,000 $22,400 64,000 64,000 96,000 304,000 Unit Cost $2.15 2.30 2.45 2.65 Total net sales (288,000 units) Total cost of goods purchased (304,000 units) Total Cost $172,000 147,200 Purchases and Sales 156,800 254,400 $730,400 Operating expenses were $130,000, and the company's income tax rate is 20%. $1,195,200 730,400

The management of Pharoah Inc is reevaluating the appropriateness of using its present inventory cost flow method, which is average-cost. The company requests your help in determining the results of operations for 2027 if either the FIFO or the LIFO method had been used. For 2027, the accounting records show these data: Purchases were made quarterly as follows. Operating expenses were $130,000, and the company's income tax rate is 20%. Prepare comparative condensed income statements for 2027 under FIFO and LIFO. The management of Pharoah Inc is reevaluating the appropriateness of using its present inventory cost flow method, which is average-cost. The company requests your help in determining the results of operations for 2027 if either the FIFO or the LIFO method had been used. For 2027, the accounting records show these data: Purchases were made quarterly as follows. Operating expenses were $130,000, and the company's income tax fate is 20%

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