Question

Orion Iron Corp. tracks the number of units purchased and sold throughout each year but applies its inventory costing method at the end of the year, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31.

  

Transactions	Units			Unit Cost
a. Inventory, Beginning		250		$	10
For the year:
b. Purchase, April 11		600			12
c. Purchase, June 1		400			12
d. Sale, May 1 (sold for $45 per unit)		250
e. Sale, July 3 (sold for $45 per unit)		350
f. Operating expenses (excluding income tax expense), $18,800

  

Required:

1. 4. Prepare an income statement that shows under the FIFO method, LIFO method and weighted average method

Prepare an Income Statement that shows under the FIFO method, LIFO method and weighted average method.

	ORION IRON CORP. Income Statement For the Year Ended December 31 FIFO LIFO Weighted Average Sales Revenue $27,000 $27,000 $27,000 Cost of Goods Sold 6,700 7,200 6,960 Gross Profit 20,300 19,800 20,040 Operating Expenses 18,800 18,800 18,800 1,500 1,000 1,240 Income from operations

Please correct any mistakes in what I have so far and fill in the rest.

Answer 1