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Required information E7-11 (Algo) Evaluating the Choice among Three Alternative Inventory Methods Based on Income and Cash Flow Effects L07-2, 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), 2,050 units at $36; purchases, 7,870 units at $38; expenses (excluding income taxes), $192,500; ending inventory per physical count at December 31, current year, 1,620 units, sales, 8,300 units, sales price per unit, $79; and average income tax rate, 30 percent. E7-11 Part 1 Required: 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. Req 1A Reg 1B Compute cost of goods sold under the FIFO, LIFO, and average cost inventory costing methods. (Do not round your intermediate calculations. Round your final answers to the nearest whole dollar amount.) Cost of Goods Sold Beginning inventory Purchases Goods available for sale Ending inventory Cost of goods sold Inventory Costing Method Units FIFO LIFO Average Cost 2,050 $ 73,800 $ 73,800 $ 73,800 7,870 299,060 299,060 299,060 9,920 372,860 372.860 372,860 1,620 61,560 58,320 60,890 8,300 $ 311,300 $ 314,540 $ 311,997 Reg 1A Reg 1B Prepare income statements under the FIFO, LIFO, and average cost inventory co intermediate calculations. Round your final answers to the nearest whole dollar Income Statement Sales revenue Cost of goods sold FIFO LIFO Average Cost $ 655,700 $ 655,700 $ 655,700 311,300 314,540 311,997 Gross profit Operating expenses 344,400 192,500 341,160 192,500 343,703 192,500 Pretax income Income tax expense 151,900 45,570 148,660 44,598 Net income $ 106,330 $ 104,062