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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, 327 units; unit sales price, $51; Expenses, $1,540 3. Rank the three methods in order of income taxes paid (favorable cash flow

User Charley
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1 Answer

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Answer:

1,2- See attached pictures.

3-

1. LIFO

2. Average

3. FIFO

Step-by-step explanation:

See attached pictures.

Following is partial information for the income statement of Audio Solutions Company-example-1
Following is partial information for the income statement of Audio Solutions Company-example-2
Following is partial information for the income statement of Audio Solutions Company-example-3
User Rao Adnan
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