Date Qty Unit C TC

Beg Inv Jan-17 22 $ 38.00 $ 836.00

12-Mar 36 $ 40.00 $ 1,440.00
27-Jun 60 $ 43.50 $ 2,610.00
17-Sep 24 $ 45.00 $ 1,080.00
20-Nov 84 $ 47.50 $ 3,990.00

Totals 226 $ 9,956.00 Weighted Av Cost

As of 31 Dec
Qty
End Inv 34

Costs
Ending Inv Goods Sold
FIFO $ 1,615.00 $ 8,341.00
LIFO $ 1,316.00 $ 8,640.00
W.A $ 1,497.81 $ 8,458.19
$ 44.05
Income Statement
Total Units 226
End Inv Units 34
Units Sold 192
Selling Price $ 89.00
Op Ex $ 14.00
Tax 30%

FIFO LIFO
Sales $ 17,088.00 $ 17,088.00

Beginning Inv $ 836.00 $ 836.00

Add Purchases $ 9,120.00 $ 9,120.00
Cost Of goods Available $ 9,956.00 $ 9,956.00
Less Ending Inv $ 1,615.00 $ 1,316.00
Cost Of Goods Sold $ 8,341.00 $ 8,640.00
Gross Profit $ 8,747.00 $ 8,448.00
Less Operating Exp $ 2,688.00 $ 2,688.00
Income from Ops $ 6,059.00 $ 5,760.00
Income Tax Exp $ 1,817.70 $ 1,728.00

If the owner wants to pay less taxes then he/she should use LIFO.

As in LIFO the costs/expenses are highest and hence the operating income comes out to be
 W.A
$ 17,088.00

$ 836.00
$ 9,120.00
$ 9,956.00
$ 1,497.81
$ 8,458.19
$ 8,629.81
$ 2,688.00
$ 5,941.81
$ 1,782.54

ncome comes out to be lowest, thus taxable income is the lowest