Hoyt Company began a year and purchased merchandise as follows:

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The company uses a periodic inventory system and the ending inventory consists of 75 units, 25 from each of the last three purchases. Determine the share of the \(\$ 3,870\) cost of the units for sale that should be assigned to the ending inventory and to goods sold under each of the following:

(a) costs are assigned on the basis of specific invoice prices,

(b) costs are assigned on a weighted-average cost basis,

(c) costs are assigned on the basis of FIFO, and

(d) costs are assigned on the basis of LIFO. Assuming the company has enough income to require that it pay income taxes, which method provides a current tax advantage?

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Jan. 1 Beginning inventory. Feb. 9 Purchased June 16 Purchased Aug. 22 Purchased Dec. 15 Purchased Total.. 20 units @ $10.00 = $ 200 100 units $11.50 = 1.150 40 units $12.50 = 500 80 units (@$14.00 = 1,120 60 units @ $15.00 900 300 units $3.870