Compute FIFO, LIFO, Average Cost?Periodic Presented below is information related to radios for the Couples Company for the month of July.

(a) Assuming that the periodic inventory method is used, compute the inventory cost at July 31 under each of the following cost flow assumptions.

(1) FIFO.

(2) LIFO.

(3) Weighted-average.

(b) Answer the following questions.

(1) Which of the methods used above will yield the lowest figure for gross profit for the income statement? Explain why.

(2) Which of the methods used above will yield the lowest figure for ending inventory for the balance sheet? Explain why.

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Units In Selling Price Unit Units Total Transaction Cost Sold Total Date July 1 $4.10 4.30 $ 410 100 800 Balance Purchase 3,440 300 300 Sale $7.00 7.30 $ 2,100 2,190 10 12 15 18 Sale 400 4.51 1,804 Purchase 200 1,480 Sale 7.40 4.60 1,380 Purchase 300 400 2,960 7.40 Sale 22 2,290 500 4.58 25 Purchase 1,500 30 Sale 200 1,400 7.50 Totals 2.100 $9,324 $10,230