Emily Company uses a periodic Inventory system. At the end of the annual accounting period, December...

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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: Inventory, December 31, prior year For the current year: Purchase, April 11 Purchase, June 1 Sales ($59 each) Operating expenses (excluding income tax expense) 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. Complete this question by entering your answers in the tabs below. Sales revenue Cost of goods sold: 2. Compute the difference between the pretax income and the ending inventory amount for the two cases. 3. Which inventory costing method may be preferred for income tax purposes? Beginning inventory Purchases Purchases Required 1 Required 2 Prepare a separate income statement through pretax income that details cost of goods sold for (a) Case A: FIFO and (b) Case B: LIFO. Goods available for sale Ending inventory Required 3 Cost of goods sold For the Year Ended December 31, current year Case A FIFO $ EMILY COMPANY Income Statement $ $ 193,000 34,320 115,050 140,760 290,130 640,150 Units Unit Cost 2,860 $ 12 Case B LIFO 8,850 7,820 10,850 0 $ 13 18 34,320 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: Inventory, December 31, prior year For the current year: Purchase, April 11 Purchase, June 1 Sales ($59 each) Operating expenses (excluding income tax expense) 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. Complete this question by entering your answers in the tabs below. Sales revenue Cost of goods sold: 2. Compute the difference between the pretax income and the ending inventory amount for the two cases. 3. Which inventory costing method may be preferred for income tax purposes? Beginning inventory Purchases Purchases Required 1 Required 2 Prepare a separate income statement through pretax income that details cost of goods sold for (a) Case A: FIFO and (b) Case B: LIFO. Goods available for sale Ending inventory Required 3 Cost of goods sold For the Year Ended December 31, current year Case A FIFO $ EMILY COMPANY Income Statement $ $ 193,000 34,320 115,050 140,760 290,130 640,150 Units Unit Cost 2,860 $ 12 Case B LIFO 8,850 7,820 10,850 0 $ 13 18 34,320

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