Following is partial information for the income statement of Audio Solutions Company under three different inventory costing methods, assuming the use of a periodic inventory system: Required:
1. Compute cost of goods sold under the FIFO, LIFO, and average cost inventory costing methods.
2. Prepare an income statement through pretax income for each method. Sales, 309 units; unit sales price, $53; Expenses, $1,690
3. Rank the three methods in order of income taxes paid (favorable cash flow).
| FIFO | LIFO | Average Cost | |
| Cost of goods sold | 10368 | 10368 | 10368 |
| Beg. Inventory (384 units @ $27) | 16170 | 16170 | 16170 |
| Purchase (462 units @ $35) | |||
| Goods avail. for sale | |||
| ending inventory (537 units) | |||
| Cost of goods sold |
