Question - Borgia Enterprises has the following statement of earnings data available for 2018:
Sales revenue $737,200
Operating expenses 243,700
Interest expense 39,500
Income tax rate 34%
Borgia uses a perpetual inventory accounting system and the weighted average cost method. Borgia is considering adopting the FIFO method for costing inventory. Borgia's accountant prepared the following data:
If Weighted Average Cost UsedIf FIFO UsedEnding inventory$ 61,850 $ 80,200 Cost of goods sold403,150 384,800
Required: Compute income before taxes, income tax expense, and net income for both of the inventory costing methods (rounded to the nearest dollar).