[The following Information applies to the questions displayed below Daniel Compa

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[The following Information applies to the questions displayed below Daniel Company uses a periodic inventory system. Data for 2015: beginning merchandise inventory December 31, 2014), 2180 units at $37: purchases, 7940 units at $39; expenses (excluding income taxes), $193,600: ending inventory per physical count at December 31, 2015, 1630; sales, 8,490 units; sales price per unit, $79; and average income tax rate, 36 percent value 1.00 points Required: 1. Compute cost of goods sold and prepare income statements under the FIFO, LIFO, and average cost inventory costing methods. (Do not round your intermediate calculations.) Inventory Costing Method Cost of Goods Sold Units FIFO LIFO Average Cost 2.180 $80,66080,660$ 80,660 309,660 390,320 Beginning inventory Purchases ,940 10.120 1,630 309,660 390,320 63.570 8.490$326,750 309.660 390,320 60,310 Goods available for sale Ending inventory Cost of goods sold LIFO Average Cost Income Statement FIFO revenue of goods sold Gross profit ing expenses Pretax income incomo tax expense et income

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Solution:

Computation of Cost of goods sold - Daniel Company Particulars Units FIFO LIFO Average Cost Beginning Inventory 2180 $80,660.00 $80,660.00 $80,660.00 Purchases 7940 $309,660.00 $309,660.00 $309,660.00 Goods available for sale 10120 $390,320.00 $390,320.00 $390,320.00 Ending Inventory 1630 $63,570.00 $60,310.00 $62,867.75 Cost of goods sold 8490 $326,750.00 $330,010.00 $327,452.25

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