Orion Iron Corp. tracks the number of units purchased and sold throughout each y

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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, 2009. Transactions Units Unit Cost a. Inventory, December 31, 2008 3,700 $9 For the year 2009: b. Purchase, April 11 10,200 7 c. Purchase, June 1 6,600 10 d. Sale, May 1 (sold for $44 per unit) 3,800 e. Sale, July 3 (sold for $44 per unit) 5,800 f. Operating expenses (excluding income tax expense), $188,000 Requirement 2: Calculate the number of units in ending inventory. Ending inventory_______units. Requirement 3: Compute the cost of ending inventory and cost of goods sold under (a) FIFO, (b) LIFO, and (c) weighted average cost. (Round Weighted average cost per unit to two decimal places and final answers to the nearest dollar amount. Omit the "$" sign in your response.) Ending inventory Cost of goods sold FIFO $_________ ___________$ LIFO $_________ ___________$ WeightedAverage_____$ ___________$ Prepare an income statement that shows 2009 amounts under the FIFO method, LIFO method and weighted average method. (Round Weighted average cost per unit to two decimal places and final answers to the nearest dollar amount. Input all amounts as positive value. Omit the "$" sign in your response.) ORION IRON CORPORATION Income Statement For the Year Ended December 31, 2009 FIFO LIFO WeightedAverage Sales revenue ____$ ____$ _______$ Cost of goods sold ____$ ____$ _______$ Gross profit ____$ ____$ _______$ Operating expenses ____$ ____$ _______$ Income from Operations ____$ ____$ _______$ Requirement 6: Which inventory costing method may be preferred by Orion Iron Corp. for income tax purposes? Lifo, Fifo or weighted average?

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long one yaar

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