value 17.00 points Courtney Company uses a periodic inventory system. The follow

Question

value 17.00 points Courtney Company uses a periodic inventory system. The following data were available: beginning inventory, 3,000 units at $30; purchases, 4,500 units at $35; operating expenses (excluding income taxes) $101,500; ending inventory per physical count at December 31, 1,750 units, sales price per unit, $60; and average income tax rate, 30% Required 1. Prepare income statements under the FIFO, LIFO, and weighted average costing methods. (Do not round intermediate calculations. Round your final answers to the nearest dollar amount.) Inventory Costing Method Weighted Average Income Statement Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Income from Operations Income Tax Expense Net Income Units FIFO LIFO 0 Weighted Average Units FIFO LIFO Cost of Goods Sold Equation Beginning Inventory Purchases Goods Available for Sale 0 0 Ending Inventory Cost of Goods Sold 0

Explanation / Answer

Requirment 1 Inventory Costing Method Income Statement Units FIFO LIFO Weighted Average Sales Revenue         5,750     3,45,000    3,45,000         3,45,000 Cost of Goods Sold *         5,750     1,86,250    1,95,000         1,89,750 Gross Profit     1,58,750    1,50,000         1,55,250 Opeating Expenses     1,01,500    1,01,500         1,01,500 Income from Operations         57,250        48,500            53,750 Income tax Expense         17,175        14,550            16,125 Net Income         40,075        33,950            37,625 Units FIFO LIFO Weighted Average * cost of goods Sold Equation Beginning Inventory         3,000         90,000        90,000            90,000 Purchases         4,500     1,57,500    1,57,500         1,57,500 Goods Avaialble for Sale         7,500     2,47,500    2,47,500         2,47,500 Ending Inventory         1,750         61,250        52,500            57,750 (1750X35) (1750X30) (1750X33) Cost of Goods Sold         5,750     1,86,250    1,95,000         1,89,750 Note: For weighted average Cost of Inventory per unit 247,500/7,500 = $33 Requirement 2a FIFO Requirement 2b LIFO Requirement 3a LIFO Requirement 3b FIFO

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