The records of Alliston Aviation Supply Inc. include the following accounts for inventory of aviation fuel...

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The records of Alliston Aviation Supply Inc. include the following accounts for inventory of aviation fuel at December 31, 2020: (Click the icon to view the records.) Requirements 1. Prepare a partial income statement through gross profit under the weighted-average-cost and FIFO methods assuming the periodic system is used. Round weighted-average cost per unit to four decimal places and all other amounts to the nearest dollar. 2. Which inventory method would you use to minimize income tax? Explain why this method causes income tax to be the lowest. Requirement 1. Prepare a partial income statement through gross profit under the weighted-average-cost and FIFO methods. Round weighted-average cost per unit to four decimal places and all other amounts to the nearest dollar. Begin with the heading and then enter the amounts in the income statement. Alliston Aviation Supply Inc. Income Statement For the Year Ended December 31, 2020 Sales revenue Weighted-Average Cost FIFO Cost of goods sold Gross profit Requirement 2. Which inventory method would you use to minimize income tax? Explain why this method causes income tax to be the lowest. Use the method to minimize income tax because cost of goods sold is highest (gross profit is lowest) under when inventory costs are The records of Alliston Aviation Supply Inc. include the following accounts for inventory of aviation fuel at December 31, 2020: (Click the icon to view the records.) Requirements 1. Prepare a partial income statement through gross profit under the weighted-average-cost and FIFO methods assuming the periodic system is used. Round weighted-average cost per unit to four decimal places and all other amounts to the nearest dollar. 2. Which inventory method would you use to minimize income tax? Explain why this method causes income tax to be the lowest. Requirement 1. Prepare a partial income statement through gross profit under the weighted-average-cost and FIFO methods. Round weighted-average cost per unit to four decimal places and all other amounts to the nearest dollar. Begin with the heading and then enter the amounts in the income statement. Alliston Aviation Supply Inc. Income Statement For the Year Ended December 31, 2020 Sales revenue Weighted-Average Cost FIFO Cost of goods sold Gross profit Requirement 2. Which inventory method would you use to minimize income tax? Explain why this method causes income tax to be the lowest. Use the method to minimize income tax because cost of goods sold is highest (gross profit is lowest) under when inventory costs are

Answer rating: 100% (QA)

The weighted averagecost method calculates the average cost of inventory by dividing the total cost ... View the full answer