1. Complete the table for each situation. In Situations A and B (costs rising), assume the following: beginning inventory, 700 units at $8 = $5,600; purchases, 800 units at $10 = $8,000. In Situations C and D (costs falling), assume the opposite; that is, beginning inventory, 700 units at $10 = $7,000; purchases, 800 units at $8 = $6,400. Use periodic inventory procedures.

value: 3.00 points E7-9 Choosing LIFO versus FIFO When Costs Are Rising and Falling LO 7-3] Use the following information to complete this exercise: sales, 950 units for $20,400; beginning inventory, 700 units; purchases, 800 units; ending inventory, 550 units; and operating expenses, $5,600 Required 1. Complete the table for each situation. In Situations A and B (costs rising), assume the following: beginning inventory, 700 units at S8-$5,600; purchases, 800 units at $10 = $8,000. In Situations C and D (costs falling), assume the opposite; that is, beginning inventory, 700 units at $10 $7,000; purchases, 800 units at $8 = $6,400. Use periodic inventory procedures. Costs Rising Costs Falling Situation A Situation B Situation C Situation D FIFO LIFO FIFO LIFO Sales Revenue 5 20,400 520,400 5 20,400 20,400 5 5,600 8,000 13.600 5,500 Goods Available for Sale Ending Inventory Cost of Goods Sold Gross Profit Operating Expenses Income from Operations Income Tax Expense (30%) Net Income B,100 12,300 5,600 6,700 2.010 $ 4,690 5,600 5,600 5,600