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    Shepard Aviation - Inventory Control Methodology

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    Please help figuring out requirement 1. See attached.

    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.

    I know the sales revenue is 126,140 across the board, but can't figure out the cost of goods and gross profit for average cost, FIFO and LIFO.

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    https://brainmass.com/business/management-accounting/shepard-aviation-inventory-control-methodology-605728

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    Shepard Aviation

    The records of Shepard Aviation include the following accounts for inventory of aviation fuel at July 31 of the current year.

    Inventory
    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

    Sales Revenue
    Jul. 31 9,010 units $126,140

    Requirements
    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 ...

    Solution Summary

    The attached MS Excel spreadsheet contains illustrations and examples of three methods of inventory control: average cost, FIFO, and LIFO.

    $2.19