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Oxendine Company’s inventory records for the month of November reveal the following: Selling and…

Oxendine Company’s inventory records for the month of November reveal the following:

Selling and administrative expenses for the month were $10,800. Depreciation expense was $4,000. Oxendine’s tax rate is 35%. Required 1. Calculate the cost of goods sold and ending inventory under each of the following three methods assuming a periodic inventory system: (a) FIFO, (b) LIFO, and (c) weighted average. 2. Calculate the gross profit and net income under each costing assumption. 3. Under which costing method will Oxendine pay the least taxes? Explain your answer. 4. Assume that Oxendine prepares its financial statements in accordance with IFRS. Which costing method should the company use to pay the least amount of taxes? Explain your answer.

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