The records of Bell Aviation include the following accounts for inventory of aviation fuel at December 31 of the current year:

Requirements
1. Prepare a partial income statement through gross profit under the average, FIFO, and LIFO methods. Round average cost per unit to four decimal places and all other amounts to the nearest dollar.
2. Which inventory method would you use to minimize income tax? Explain why this method causes income tax to be thelowest.

Transcribed Image Text:

Inventory Jan 1 Balance 790 units @$7.70 $ 6,083 Mar 6 Phae 320 units@ $7.80 2,496 Jun 22 Pchae 8,350 units@$8.20 68,470 Oct 4 e 530 units@ $9.20 4,876 Sales Revenue Dec 31 9,010 units $132,447