Answer Happy

E7-9 (Algo) Evaluating the Choice among Three Alternative
Inventory Methods Based on Cash Flow Effects LO7-2, 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, 314 units; unit sales price, $51; Expenses, $1,570
Rank the three methods in order of income taxes paid (favorable
cash flow).
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.
Prepare an income statement through pretax income for each
method.
Sales, 314 units; unit sales price, $51; Expenses, $1,570
Note: Use the COGS amount from Required 1.