Daniel Company uses a periodic inventory system. Data for the current year: beginning merchandise inventory (ending inventory December 31, prior year), 2,150 units at $38; purchases, 7,890 units at $40; expenses (excluding income taxes), $193,400; ending inventory per physical count at December 31, current year, 1,670 units; sales, 8,370 units; sales price per unit, $76; and average income tax rate, 36 percent.

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.

	Inventory Costing Method
Cost of Goods Sold	Units	FIFO	LIFO	Average Cost
Beginning inventory	2,150
Purchases	7,890
Goods available for sale	10,040	0	0	0
Ending inventory	1,670
Cost of goods sold	8,370

Income Statement	FIFO	LIFO	Average Cost