$25$th Century Electronic Center began October with $100$ units of merchandise inventory that cost $$78$ each. During October, the store made the following purchases:

$($Click the icon to view the purchases.$)$

$25$th Century uses the periodic inventory system, and the physical count at October $31$ indicates that $130$ units of merchandise inventory are on hand.

Read the requirements. methods.

FIFO

Ending inventory

Cost of goods sold

Requirements

Data table

$\backslash$table$[[$Oct$.3,40$ units @ $$80$ each$],[$Oct$.12,60$ units @ $$82$ each$],[$Oct$.18,40$ units @ $$94$ each$]]$

Determine the ending merchandise inventory and cost of goods sold amounts for the October financial statements using the FIFO, LIFO, and weighted$-$average inventory costing methods.

Sales revenue for October totaled $$23,000.$ Compute $25$ th Century's gross profit for October using each method.

Which method will result in the lowest income taxes for $25$ th Century? Why? Which method will result in the highest net income for $25$ th Century? Why?