Do not give answer in image Givoly Incorporated uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, theaccounting records provided the following information for product 2:Inventory, December 31, prior yearFor the current year:Purchase, March 5Purchase, September 19Units7,100$ 401,00019,10010,1008,10016,100Unit Cost$9Sale ($29 each)Sale ($31 each)Operating expenses (excluding income tax expense)Required:1. Prepare a separate income statement through pretax income that details cost of goods sold for (a) Case A: FIFO and (b) Case B:LIFO.732. Compute the difference between the pretax income and the ending inventory amounts for the two cases.3. Which inventory costing method may be preferred for income tax purposes? Complete this question by entering your answers in the tabs below.Required 1 Required 2Sales revenueCost of goods sold:Prepare a separate income statement through pretax income that details cost of goods sold for (a) Case A: FIFO and (b) CaseB: LIFO.Note: Loss amounts should be indicated with a minus sign.Beginning inventoryPurchasesGoods available for saleEnding inventoryCost of goods soldGross profitOperating expensesPretax income/lossRequired 3Required 1For the Year Ended December 31, current yearCase AFIFOGIVOLY INCORPORATEDIncome StatementRequired 2✔✔$ 63,900✔164,000✔Case AFIFO3››Answer is not complete.♥227,90044,300Required 3S734,000550,400401,000149,400< Required 1Required 1 Required 2 Required 3♥Comparison of AmountsCase BLIFOCase BLIFO$ 63,900✔164,000✔227,900> Answer is not complete.Complete this question by entering your answers in the tabs below.98,900✔>Difference734,000Compute the difference between the pretax income and the ending inventory amounts for the two cases.Pretax income$ 149,400 S 204,000 S (54,600)Ending inventory $ 44,300 S 98,900 $ (54,600) ✔< Required 1805,000401,000204,000Required 2 >Required 3 >> Answer is not complete.Complete this question by entering your answers in the tabs below.Which inventory costing method may be preferred for income tax purposes?Which inventory costing method may be preferred for income tax purposes?FIFO

Name: Do not give answer in image Givoly Incorporated uses a periodic invent
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Description: Do not give answer in image Givoly Incorporated uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, theaccounting records provided the following information for product 2:Inventory, December

The income statement can be prepared using various methods as FIFO, LIFO and weighted average…

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Givoly Incorporated uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 2: Inventory, December 31, prior year For the current year: Purchase, March 5 Purchase, September 19 Units 7,100 $ 401,000 19,100 10,100 8,100 16,100 Unit Cost $9 Sale ($29 each) Sale ($31 each) Operating expenses (excluding income tax expense) Required: 1. Prepare a separate income statement through pretax income that details cost of goods sold for (a) Case A: FIFO and (b) Case B: LIFO. 7 3 2. Compute the difference between the pretax income and the ending inventory amounts for the two cases. 3. Which inventory costing method may be preferred for income tax purposes?