Question

The following information applies to the questions displayed below Beck Inc. uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product2 Units Unit Cost 7400 $12 Inventory December 31, prior year For the current year 19.400 10.400 8.400 6.400 Purchase, March 5 Purchase, September 19 Sale ($27 each) Sale ($29 each) Operating expenses (excluding income tax expense) 10 $404.000 14. Required information 12.00 points Required: . Prepare a separate income statement through pretax income that details cost of goods sold for (a) Case A: FIFO and (b) Case B: LIFO. (Loss amounts should be indicated with a minus sign.) BECK I Income Statement For the Year Ended December 31, current year Case A Case B FIFO LIFO Cost of goods sold Goods available for sale Cost of goods sold Pretax income/loss

Answer 1

Income statement

	FIFO		LIFO
Sales revenue (8400*27+16400*29)		702400		702400
Cost of goods sold
Beginning inventory	88800		88800
Purchase March 5	194000		194000
Purchase Sep 19	62400		62400
Goods available for sale	345200		345200
Ending inventory	-82400		-138800
Cost of goods sold		262800		206400
Gross profit		439600		496000
Operating expense		404000		404000
Pretax income		35600		92000