Please help figuring out requirement 1. See attached.© BrainMass Inc. brainmass.com October 10, 2019, 8:02 am ad1c9bdddf
The records of Shepard Aviation include the following accounts for inventory of aviation fuel at July 31 of the current year.
Aug. 1 Balance 800 units @ $5.00 $4,000
Nov. 5 Purchase 500 units @ $6.80 $3,400
Jan. 24 Purchase 8,000 units @ $7.00 $56,000
Apr. 8 Purchase 700 units @ $8.00 $5,600
Jul. 31 9,010 units $126,140
1. Prepare a partial income statement through gross profit under the average, FIFO, and LIFO methods.
Round average cost per unit to four decimal places and all other amounts to the nearest whole dollar.
2. Which inventory method would you use to minimize income tax? Explain why this method causes income tax to be the ...
The attached MS Excel spreadsheet contains illustrations and examples of three methods of inventory control: average cost, FIFO, and LIFO.