Question: Courtney Company uses a periodic inventory system The following data

Courtney Company uses a periodic inventory system. The following data were available: beginning inventory, 1,000 units at $ 35; purchases, 4,000 units at $ 38; operating expenses (excluding income taxes), $ 91,500; ending inventory per physical count at December 31, 900 units; sales price per unit, $ 75; and average income tax rate, 30%.
1. Complete the body of the following income statements and the cost of goods sold calculation under the FIFO, LIFO, and weighted average costing methods.
2. Between FIFO and LIFO, which method is preferable in terms of (a) maximizing income from operations or (b) minimizing income taxes? Explain.
3. What would be your answer to requirement 2 if costs were falling? Explain.

  • CreatedNovember 02, 2015
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