E7-11 Evaluating the Choice among Three Alternative Inventory Methods Based on Income and Cash Flow Effects LO7-2, 7-3 The following information applies to the questions displayed below. Daniel Company uses a periodic inventory system. Data for the current year beginning merchandise inventory (ending inventory December 31, prior year). 2.000 units at $38, purchases, 8,000 units at $40 expenses (excluding income taxes), $194,500 ending inventory per physical count at December 31, current year, 1,800 units; sales, 8,200 units, sales price per unit, $75 ang averege income tax rate, 30 percent References Section Break E7-11 Evaluating the Choice among Three Alternative Inventory Methods Based on Income and Cash Flow Effects LO7-2 7-3 bi 18.50 points Requtred information he E7-11 Part 1 Type here to search E7-11 Part 1 Required 1. Compute cost of goods sold and prepare income statements under the FIFO, LIFO, and average cost inventory costing methods. (Do not round your intermediate calculations.) Inventory Costing Method Cost of Goods Sold Beginning inventory Units FIFO LIFO Average C Goods available for sale Ending inventory Cost of goods sold Income Statement FIFO LIFO Type here to search value Required information 2.00 points E7-11 Part 3 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? n prices are falling, the opposite effect occurs br References eBook & Resources he Worksheet 7-11 Part 3 Type here to search