6 7 Problem 5-13A Inventory Costing Methods-Periodic System Following is an inventory acquisition schedule for Fees Corp. for 2014: Units Unit Cost 4,000 $20 Beginning inventory Purchases February 4 April 12 September 10 December5 2,000 3,000 1,000 2,500 18 16 14 12 During the year, Fees sold 11,000 units at S30 cach. All expenses except cost of goods sold and taxes amounted to $60,000. The tax rate is 30%. Required Compute cost of goods sold and ending inventory under each of the following three meth- ods assuming a periodic inventory system: (a) weighted average, (b) FIFO, and (c) LIFO Prepare income statements under each of the three methods l. 2. 3. Which method do you recommend so that Fees pays the least amount of taxes during 2014 Explain your answer. 4. Fees anticipates that unit costs for inventory will increase throughout 2015. Will Fees be able to switch from the method you recommended that it use in 2014 to another method to take advantage of the increase in prices for tax purposes? Explain your