Suppose Greg's Tunes, Inc., has the following inventory records for July 2013: Operating expense for July was $1,900.
|
Date
|
Item
|
Quantity
|
Unit Cost
|
Sale Price
|
|
Jul
|
1
|
Beginning inventory
|
100 units
|
$ 8
|
|
|
|
10
|
Purchase
|
60 units
|
9
|
|
|
|
15
|
Sale
|
70 units
|
|
$20
|
|
|
21
|
Purchase
|
100 units
|
10
|
|
|
|
30
|
Sale
|
90 units
|
|
25
|
Requirement
1. Prepare the July income statement in multi-step format. Show amounts for FIFO, LIFO, and Average cost. Label the bottom line "Operating income." Show your computations using periodic inventory, using the income statement on page 326 as your guide to compute cost of goods sold.