The following information appies to the questions dispiayed below) Beck Inc. use

Question

The following information appies to the questions dispiayed 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 product 2 Units Unit Cost 6,800 $ 8 Inventory, December 31, prior year For the current year Purchase, March 5 8,800 9,800 8,000 5,800 Sale ($30 each) Sale ($32 each) Operating expenses (excluding income tax expense) $398,000 value: Required information 2.00 points Required 1. 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.) BECKI 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

Explanation / Answer

Prepare seprate income statement :

BECK INC. INCOME STATEMENT For the year ended December 31, Current year CASE A CASE B FIFO LIFO Sales revenue 745600 745600 Less: Cost of goods sold Beginning inventory 54400 54400 Add: Purchase 132400 132400 Cost of goods available for sale 186800 186800 Less : Ending inventory (30400) (83200) cost of goods sold (156400) (103600) Gross profit 589200 642000 Less: Operating expenses (398000) (398000) Net income 191200 244000

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