Daniel Company uses a periodic inventory system. Data for the current year: beginning merchandise inventory $($ending inventory December $31,$ prior year$),2,110$ units at $$37$; purchases, $7,910$ units at $$39$; expenses $($excluding income taxes$),$ $$192,800$; ending inventory per physical count at December $31,$ current year, $1,600$ units; sales, $8,420$ units; sales price per unit, $$76$; and average income tax rate, $34$ 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? Daniel Company uses a periodic inventory system. Data for the current year: beginning merchandise inventory $($ending inventory December $31,$ prior year$),2,110$ units at $\backslash$$$37$; purchases, $7,910$ units at $\backslash$$$39$; expenses $($excluding income taxes$),\backslash$$$192,800$; ending inventory per physical count at December $31,$ current year, $1,600$ units; sales, $8,420$ units; sales price per unit, $\backslash (\backslash$$ $76\backslash )$; and average income tax rate, $34$ 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 $(\backslash ($ b $\backslash ))$ 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?

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

Req $1$a

Req $1$b

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

Note: Do not round your intermediate calculations. Round your final answers to the nearest whole dollar amount. Daniel Company uses a periodic inventory system. Data for the current year: beginning merchandise inventory $($ending inventory December $31,$ prior year$),2,110$ units at $\backslash$$$37$; purchases, $7,910$ units at $\backslash$$$39$; expenses $($excluding income taxes$),\backslash$$$192,800$; ending inventory per physical count at December $31,$ current year, $1,600$ units; sales, $8,420$ units; sales price per unit, $\backslash$$$76$; and average income tax rate, $34$ 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 $(\backslash ($ b $\backslash ))$ income taxes paid $($cash flow$)?$

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

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

Req $1$ a

Req $1$b

Req $2$

Req $3$

Prepare income statements under the FIFO, LIFO, 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$.$