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, $318$ units; unit sales price, $$50$; Expenses, $$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.

Required $1$

Required $2$

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

Note: Round intermediate calculations to $2$ decimal places. Round your answers to the nearest whole dollar amount.

$\backslash$table$[[,$FIFO,LIFO,$\backslash$table$[[$Average$],[$Cost$]]],[$Cost of goods sold$],[$Beginning inventory $(394$ units @ $$27),$$$,10,638,$$$,10,638,$$$,10,638],[$Purchases $(464$ units @ $$35),,16,240,,16,240,,16,240],[$Goods available for sale$],[$Ending inventory $(540$ units $)],[$Cost of goods sold,,,,,,$]]$

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

Required $1$

Required $2$

Required $3$

Prepare an income statement through pretax income for each method.

Sales, $318$ units; unit sales price, $$50$; Expenses, $$1,580$

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

$\backslash$table$[[,$FIFO,LIFO,$\backslash$table$[[$Average$],[$Cost$]]],[,,,],[,,,],[,,,],[,,,],[,,,]]$

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, $318$ units; unit sales price, $$50$; Expenses, $$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.

Required $1$

Required $2$

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

Note: Round intermediate calculations to $2$ decimal places. Round your answers to the nearest whole dollar amount.

$\backslash$table$[[,$FIFO,LIFO,$\backslash$table$[[$Average$],[$Cost$]]],[$Cost of goods sold$],[$Beginning inventory $(394$ units @ $$27),$$$,10,638,$$$,10,638,$$$,10,638],[$Purchases $(464$ units @ $$35),,16,240,,16,240,,16,240],[$Goods available for sale$],[$Ending inventory $(540$ units $)],[$Cost of goods sold,,,,,,$]]$