Data for Kane Ltd. are presented in P6.13A. Assume that Kane sold product SXL for $200 per

Question:

Data for Kane Ltd. are presented in P6.13A. Assume that Kane sold product SXL for $200 per unit during the year.
Instructions
(a) Prepare a partial income statement through to gross profit for each of the two cost formulas: (1) FIFO and
(2) Average cost.
(b) Show how inventory would be reported in the current assets section of the statement of financial position for
(1) FIFO and
(2) Average cost.
(c) Which cost formula results in the lower inventory amount for the statement of financial position? The lower gross profit amount for the income statement?