Subject :- Accounting Daniel Company uses a periodic inventory system. Data for the current year: beginning merchandise inventory (endinginventory December 31, prior year), 2,040 units at $37; purchases, 7,900 units at $39; expenses (excluding incometaxes), $192,900; ending inventory per physical count at December 31, current year, 1,610 units; sales, 8,330 units; salesprice per unit, $78; and average income tax rate, 30 percent.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.2. Between FIFO and LIFO, which method is preferable in terms of (a) net income and (b) income taxes paid (cash flow)?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?Complete this question by entering your answers in the tabs below.Req la Req 1b Req 2 Req 3Prepare income statements under the FIFO, LIFO, and average cost inventory costingmethods.Note: Do not round your intermediate calculations. Round your final answers to the nearestwhole dollar amount. Use the COGS amount from Required 1a.Income StatementSales RevenueCost of goods soldGross profitOperating expensesPretax incomeIncome tax expenseNet incomeFIFOLIFO$649,740$649,740320,790 324,010< Req 1aAverageCost$ 649,740Req 2 >Show less ▲ Daniel Company uses a periodic inventory system. Data for the current year: beginning merchandise inventory (endinginventory December 31, prior year), 2,040 units at $37; purchases, 7,900 units at $39; expenses (excluding incometaxes), $192,900; ending inventory per physical count at December 31, current year, 1,610 units; sales, 8,330 units; salesprice per unit, $78; and average income tax rate, 30 percent.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.2. Between FIFO and LIFO, which method is preferable in terms of (a) net income and (b) income taxes paid (cash flow)?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?Complete this question by entering your answers in the tabs below.Req 1a Req 1b Req 2 Req 3Compute cost of goods sold under the FIFO, LIFO, and average cost inventory costingmethods.Note: Do not round your intermediate calculations. Round your final answers to the nearestwhole dollar amount.Cost of Goods SoldBeginning inventoryPurchasesGoods available forsaleEnding inventoryCost of goods soldInventory Costing MethodFIFOUnitsLIFO2,040 $75,480 $ 75,4807,9009,9401,61059,57062,7908,330 $ 320,790 $ 324,010< Req 1aAverageCost$ 75,480308,100 308,100 308,100383,580383,580 383,580Req 1b >Show less

Name: Subject :- Accounting Daniel Company uses a periodic inventory system.
Uploaded: 2024-03-20T06:32:37.000Z
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Description: Subject :- Accounting Daniel Company uses a periodic inventory system. Data for the current year: beginning merchandise inventory (endinginventory December 31, prior year), 2,040 units at $37; purchases, 7,900 units at $39; expenses (excluding income