E$7-9($Algo$)$ Evaluating the Choice among Three Alternative Inventory Methods Based on Cash Flow

Effects LO$7-2,7-3$

Following is partial information for the income statement of Audio Solutions Company under three different inventory costing methods,

assuming the use of a periodic inventory system:

Required:

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

Prepare an income statement through pretax income for each method.

Sales, $315$ units; unit sales price, $$53$; Expenses, $$1,580$

Rank the three methods in order of income taxes paid $($favorable cash flow$).$

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

Prepare an income statement through pretax income for each method.

Sales, $315$ units; unit sales price, $$53$; Expenses, $$1,580$

Note: Use the COGS amount from Required $1.$