The records of Sonic Sound Systems Inc. include the following for cases of CDs at December 31, 2020:

{Requirements}
1. Prepare a partial income statement through gross profit under the weighted-average-cost and FIFO cost methods assuming the periodic system is used. Round weighted-average cost per unit to four decimal places and all other amounts to the nearest dollar.
2. Which inventory method would you use to report the highest net income? Explain why this method produces the highest reported income.

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Inventory Jan. 1 Balance 300 cases @$300 121,500 100 cases @ 315 May 19 Purchase Aug. 12 Purchase Oct. 4 Purchase 600 cases @ 335 400 cases @ 350 201,000 140,000 700 cases @ 370 259,000 Sales Revenue Dec. 31 1,800 cases 910,000