Question

Required information The following information applies to the questions displayed below.) Daniel Company uses a periodic inventory system. Data for the current year: beginning merchandise inventory lending inventory December 31, prior year). 2.000 units at $38: purchases. 8.000 units at $40: expenses (excluding income taxes). $184,500, ending inventory per physical count at December 31, current year, 1.800 units, sales, 8.200 units: sales price per unit, $75; 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 Complete this question by entering your answers in the tabs below. Required 1A Required 1B Prepare income statements under the FIFO, LIFO, and average cost inventory costing methods. (Do not round your Intermediate calculations.) Income Statement FIFO LIFO Average

Answer 1

Daniel Company
	Inventory costing method
COGS	Units	FIFO	LIFO	Average Cost
opening inventory	2000	76000	76000	76000
Purchases	8000	320000	320000	320000
Goods available for sale	10000	396000	396000	396000
ending inventory	1800	72000	68400	71280
COGS	8200	324000	327600	324720
Ending inventory ( FIFO ) = 1800 * 40
Ending inventory ( LIFO ) = 1800 * 38
Ending Inventory ( weighted avg.) = 1800 * 396000 / 10000
Income statement	FIFO	LIFO	Average Cost
Sales ( 8200 * 75 )	615000	615000	615000
Less:- COGS	324000	327600	324720
GP	291000	287400	290280
less :- Operating exp.	184500	184500	184500
Income before taxes	106500	102900	105780
income tax	31950	30870	31734
Net income	74550	72030	74046