3: 8 marks) Alhekema Company uses the periodic inventory system to account for inventories. It reports display the following for the month of September, in which 95 units were sold. Date Explanation Units Unit costs Total Cost Sept. 1 Beginning inventory 16 $50 $800 Sept. 5 Purchases 50 42 2.100 Sept. 16 Purchases 50 39 1,950 Sept. 27 Purchases 35 37 1,295 Instructions: a) Determine the ending inventory and the cost of goods sold using: FIFO method (1.5 marks) LIFO method (1.5 marks) Average-cost method (1.5 marks) b) For the current year, the management of Alhekema Company asks your help in identifying which method produce higher income taxes. Justify your answer (3.5 marks: I mark for identification and 2.5 marks for justification) Solution: a) Beginning inventory Purchases Cost of goods available for sale Ending inventory Cost of goods sold FIFO LIFO Average cost b)