Reference no: EM132640997

The purchase schedule for Lumbermans and Associates is as follows:

Date Items Purchased Cost per Item

July 30                 6,000            $1.3

March 15                 9,000                1.5

December 17               7,000             1.6

Total                           22,000

The inventory balance as of the beginning of the year was $15,000 (15,000 units at $1), and an inventory count at year-end indicated that 11,000 items were on hand. Sales and operating expenses (excluding cost of goods sold) totaled $55,000 and $15,000, respectively. The federal income tax is 30 percent of taxable income.

Problem 1: Prepare three income statements, one under each of the assumptions: FIFO, average, and LIFO. (Round average cost per unit to 3 decimal places, e.g. 1.246 and final answers to 0 decimal places e.g. 58,971.)