Task Team of FUNdaMENTAL aCCOUNTiNg 6. Mac Inc needs to prepare interim financial statements for the first quarter of 2001. Macs gross profit rate averages 40%. The following infomation for the first quarter is available from its record January l beginning inventory $140.720 Cost of goods purchased 694,080 Sales 1,164800 Sales returns 8.640 Required: Use the gross profit method to estimate the company's first quarter ending inventory 7. HiTec Corp had the following invnetory transactions during the year 2002. The company incurred operating expenses of $3 per unit in selling the units Jan I Beg. inventory 750 units( @ $12 perunit Feb 15 Purchase 2, 800 units @$13 perunit Mar 10 sa 2, 100 units(@ $40 per unit Apr 15 Purchase 400 units@$14 per unit Jun 10 sale 2, 200 units@$41 per uni Oct 15 Purchase 1, 600 units @$15 perunit 2, 600 units(@ $42 per uni Dec 2 urchase 2, 300 units@ $16 perunit (1)Prepare comparative income statements for the company for the three different inventory costing methods of FIFO, LIFO, and weighted average. Include a detailed cost of goods sold section as part of each statement. The company uses a perpetual inventory system, and its income tax rate is 30% (2)What advantages and disadvantages are offered by using(a) LIFO and(b) FIFO? Assume the continuing trend of increasing costsTask Team of FUNDAMENTAL ACCOUNTING School of Business, Sun Yat-sen University 3 6. Mac Inc. needs to prepare interim financial statements for the first quarter of 2001. Mac’s gross profit rate averages 40%. The following information for the first quarter is available from its records: January 1 beginning inventory $140,720 Cost of goods purchased 694,080 Sales 1,164,800 Sales returns 8,640 Required: Use the gross profit method to estimate the company’s first quarter ending inventory. 7. HiTec Corp. had the following invnetory transactions during the year 2002. The company incurred operating expenses of $3 per unit in selling the units. Jan 1 Beg. inventory 750 units @ $12 per unit Feb 15 Purchase 2,800 units @ $13 per unit Mar 10 Sale 2,100 units @ $40 per unit Apr. 15 Purchase 400 units @ $14 per unit Jun 10 Sale 2,200 units @ $41 per uni Oct. 15 Purchase 1,600 units @ $15 per unit Nov 15 Sale 2,600 units @ $42 per uni Dec. 21 Purchase 2,300 units @ $16 per unit Required: (1) Prepare comparative income statements for the company for the three different inventory costing methods of FIFO, LIFO, and weighted average. Include a detailed cost of goods sold section as part of each statement. The company uses a perpetual inventory system, and its income tax rate is 30%. (2) What advantages and disadvantages are offered by using (a) LIFO and (b) FIFO? Assume the continuing trend of increasing costs