The Harrison Corporation was organized and began retailing operations on January 1, 1979. Purchases of merchandise inventory during 1979 and 1980 were as follows:

The number of units sold during 1979 and 1980 was 90,000 units and 110,000 units, respectively. Harrison Corporation uses a periodic inventory method.
a Determine the cost of goods sold during 1979 under the FIFO cost-flow assumption.
b Determine the cost of goods sold during 1979 under the LIFO cost-flow assumption.
c Determine the cost of goods sold during 1979 under the weighted-average cost-flow assumption.
d Determine the cost of goods sold during 1980 under the FIFO cost-flow assumption.
e Determine the cost of goods sold during 1980 under the LIFO cost-flow assumption.
f Determine the cost of goods sold during 1980 under the weighted-average cost-flow assumption.
g For the 2 years, 1979 and 1980, taken as a whole, will FIFO or LIFO result in reporting the larger net income? What is the difference in net income for the 2 -year period under FIFO as compared to LIFO? Assume an income tax rate of 40 percent for both years.
h Which method, LIFO or FIFO, should Harrison Corporation probably prefer and why?

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Quantity Unit Acquisition Purchased Price Cost 1/10/79. 6/30/79 10/20/79 100,000 $.10 $10,000 40,000 .15 6,000 20,000 .16 Total 1979 160,000 3,200 $19,200 2/18/80. 30,000 $ 18 7/15/80. 10,000 .20 12/15/80 50,000 .22 22 Total 1980 90,000 $ 5,400 2,000 11,000 $18,400