Daniel Company uses a periodic inventory system. Data for the current year. beginning merchandise inventory $($ending inventory December $31,$ prior year$),2,010$ units at $$38$; purchases, $7,980$ units at $$40$; expenses $($excluding income taxes$),$ $$194,100$; ending inventory per physical count at December $31,$ current year, $1,790$ units; sales, $8,200$ units; sales price per unit, $$80$; and average income tax rate, $32$ percent.

Required:

$1-$a$.$ Compute cost of goods sold under the FIFO, LIFO, and average cost inventory costing methods.

$1-$b$.$ Prepare income statements under the FIFO, LIFO, and average cost inventory costing methods.

$2.$ Between FIFO and LIFO, which method is preferable in terms of $($a$)$ net income and $($b$)$ income taxes paid $($cash flow$)?$

$3.$ Between FIFO and LIFO, which method is preferable in terms of $($a$)$ net income and $($b$)$ income taxes paid $($cash flow$),$ assuming that prices were falling?

Answer is not complete.

Complete this question by entering your answers in the tabs below.

Req $1$ a Req $1$ b Req $23$ Req $3$ R

Prepare income statements under the FIFO, LFO, and average cost inventory costing methods.

Note: Do not round your intermediate calculations. Round your final answers to the nearest whole dollar amount. Use the COGS amount from Required $1$ a $.$

$\backslash$table$[[$fhcome Statement,FIFO,LFO,$\backslash$table$[[$Average$],[$Cost$]]],[$Sales Revenue,$$656,000$$$,$$$656,000,656,000$