Solution-Complete the income statements and the cost of

Complete the income statements and the cost of goods sold

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Question - Courtney Company uses a periodic inventory system. The following data were available: beginning inventory, 1,900 units at $20; purchases, 3,100 units at $25; operating expenses (excluding income taxes), $98,000; ending inventory per physical count at December 31, 1,400 units; sales price per unit, $65; and average income tax rate, 30%.

Required -

1. Complete the income statements and the cost of goods sold calculation under the FIFO, LIFO, and weighted average costing methods.

2-a. Between FIFO and LIFO, which method is preferable in terms of maximizing income from operations, if costs are rising?

2-b. Between FIFO and LIFO, which method is preferable in terms of minimizing income taxes, if costs are rising?

3-a. Between FIFO and LIFO, which method is preferable in terms of maximizing income from operations, if costs are falling?

3-b. Between FIFO and LIFO, which method is preferable in terms of minimizing income taxes, if costs are falling?

Reference no: EM133127707

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Complete the income statements and the cost of goods sold

Reference no: EM133127707

Reference no: EM133127707

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