E$7-8($Static$)$ Analyzing and Interpreting the Financial Statement Effects of Periodic FIFO, LIFO, and

Weighted Average Cost $[$LO $7-3]$

Orion Iron Corporation tracks the number of units purchased and sold throughout each year but applies its inventory costing method

at the end of the year, as if it uses a periodic inventory system. Assume its accounting records provided the following information at

the end of the annual accounting period, December $31.$

Required:

Calculate the number and cost of goods available for sale.

Calculate the number of units in ending inventory.

Compute the cost of ending inventory and cost of goods sold under $($a$)$ FIFO, $($b$)$ LIFO, and $($c$)$ weighted average cost.

Prepare an income statement that shows under the FIFO method, LIFO method and weighted average method.

Which inventory costing method minimizes income taxes?

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Calculate the number and cost of goods available for sale.Required information E$7-8($Static$)$ Analyzing and Interpreting the Financial Statement Effects of LIFO and FIFO LO$7-2,7-3[$The following information applies to the questions displayed below.$]$ Givoly Inc. uses a periodic inventory system. At the end of the annual accounting period, December $31$ of the current year, the accounting records provided the following information for product $2$ : E$7-8$ Part $33.$ Which inventory costing method may be preferred for income tax purposes?