10/18/21, 8:58 AMChapter 6 Homework (Graded) - Sueiro-Khoa Nguyenhttps://xlitemprod.pearsoncmg.com/api/v1/print/highered1/101.2.Student: Khoa Nguyen Date: 10/18/21Instructor: Alexander Sueiro Course: ACG2021 - Fall 2021 - SueiroAssignment: Chapter 6 Homework(Graded) - SueiroReview Only Print Supplies, Inc., sells laser printers and supplies. Assume started the year with containers of ink (average cost of each, FIFO cost of each, LIFO cost of each). During the year, the company purchased containers of ink at and sold units for each. paid operating expenses throughout the year, a total of . Ignore income taxes for this exercise.Duffy Duffy 100$9.20 $8.60 $7.90600 $9.90 580 $20.00 Duffy$3,900Prepare 's income statement for the current year ended December 31 using the average-cost, FIFO, and LIFO inventory costing methods. Include a complete statement heading.Duffy Click the icon to see the Worked Solution.Complete the income statement by selecting the appropriate heading and income statement labels, and then calculating the amounts for each of the three required inventory methods. (Calculate unit costs to the nearest cent. Round all other calculations to the nearest whole dollar.)Duffy Print Supplies, Inc.Income StatementYear Ended December 31Average CostSales revenue11,600$Cost of goods sold5,684Gross profit5,916$Operating expenses3,900Net income2,016$FIFO11,600$5,6125,988$3,9002,088$LIFO11,600$5,7425,858$3,9001,958$Review Only1: Data TableIt is December 31, the end of the year, and the controller of Corporation is applying the lower-of-cost-or-market (LCM) rule to inventories. Before any year-end adjustments, the company reports the following data:Cornell (Click the icon to view the data.)1 determines that the net realizable value of ending inventory is . Show what should report for ending inventory and for cost of goods sold. Identify the financial statement where each item appears.Cornell $45,000 Cornell Click the icon to see the Worked Solution. Financial statement where item isreportedBalance to be reportedInventoryBalance Sheet45,000$Cost of goods soldIncome Statement459,000$Cost of goods sold440,000$Historical cost of ending inventory, as determined by a physical count64,00010/18/21, 8:58 AMChapter 6 Homework (Graded) - Sueiro-Khoa Nguyenhttps://xlitemprod.pearsoncmg.com/api/v1/print/highered2/103.Review Only2: Data Table3: Requirements Company's inventory records for its retail division show the following at 31:Richmond May (Click the icon to view the accounting records.)2At 31, of these units are on hand. May 10Read the requirements .3 Click the icon to see the Worked Solution.Requirement 1. Compute cost of goods sold and ending inventory, using each of the following four inventory methods: Begin by entering the number of units sold and number of units in ending inventory. Then calculate cost of goods sold and ending inventory using (a) specific identification, then (b) average cost, then (c) FIFO, and finally (d) LIFO. (Round the average cost per unit to the nearest cent. Round all final answers to the nearest whole dollar.)Number of unitsCost of goods sold14Ending inventory10(a)Specific identification2,194$1,550$(b)Average cost2,184$1,560$(c)FIFO2,144$1,600$(d)LIFO2,240$1,504$Requirement 2. Which method produces the highest cost of goods sold? Which method produces the lowest cost of goods sold?What causes the difference in cost of goods sold?Which method produces the highest cost of goods sold? LIFOWhich method produces the lowest cost of goods sold? FIFOThe difference in cost of goods sold under the two methods identified above was caused by .the increase in inventory unit costMay 1Beginning inventory6 units @ $150 = $900May 15Purchase4 units @ $151 = $604May 26Purchase14 units @ $160 = $2,2401. Compute cost of goods sold and ending inventory, using each of the following methods:a. Specific identification, with units and units still on hand at the endfive $150 five $160b. Average costc. FIFOd. LIFO2. Which method produces the highest cost of goods sold? Which method produces the lowest cost of goods sold? What causes the difference in cost of goods sold?10/18/21, 8:58 AMChapter 6 Homework (Graded) - Sueiro-Khoa Nguyenhttps://xlitemprod.pearsoncmg.com/api/v1/print/highered3/104.Review Only4: Data Table5: Requirements specializes in sound equipment. Company records indicate the following data for a line of speakers:MusicPalace (Click the icon to view the data.)4Read the requirements .5 Click the icon to see the Worked Solution.Requirement 1. Determine the amounts that should report for cost of goods sold and ending inventory two ways: a. FIFO and b. LIFO. ( uses a perpetual inventory system.)MusicPalaceMusicPalacea.Using the FIFO method, the cost of goods sold is$638and the ending inventory is$570.b.Using the LIFO method, the cost of goods sold is$686and the ending inventory is$522.Requirement 2. uses the FIFO method. Prepare the company's income statement for the month ended 31, , reporting gross profit. Operating expenses totaled , and the income tax rate was . (Round answers to the nearest dollar.)MusicPalaceMarch 2018 $310 35%MusicPalaceIncome StatementMonth Ended March 31, 2018Sales revenue1,026$Cost of goods sold638Gross profit388Operating expenses310Income before income tax78Income tax expense27Net income51$Date ItemQuantityUnit CostSale PriceMar1Balance . . . . . . . . . . . . . .1458$2Purchase . . . . . . . . . . . . .6667Sale . . . . . . . . . . . . . . .794$13Sale . . . . . . . . . . . . . . .4921. Determine the amounts that should report for cost of goods sold and ending inventory two ways: ( uses a perpetual inventory system.)MusicPalaceMusicPalacea. FIFOb. LIFO2. uses the FIFO method. Prepare the company's income statement for the month ended 31, , reporting gross profit. Operating expenses totaled , and the income tax rate was . MusicPalace March 2018$310 35%10/18/21, 8:58 AMChapter 6 Homework (Graded) - Sueiro-Khoa Nguyenhttps://xlitemprod.pearsoncmg.com/api/v1/print/highered4/105.Review Only6: Data Table7: More Info8: Requirement Garden Supplies uses a perpetual inventory system. The company has these account balances at 31, , prior to making the year-end adjustments:Princeton December2018 (Click the icon to view the account balances.) (Click the icon to view additional information.)6 7Read the requirement .8 Click the icon to see the