7B-1. PISA SPAGHETTI MAKER Company began the year with 60 units in inventory that cost $88 each. During the year PISA, which uses a periodic inventory system, makes the following purchases of new units: Price per Unit $103 Quantity 80 Date February 22 May 3 October 9 117 96 123 46 138 33 December 3 The physical inventory count at the end of the year showed 110 units in inventory. Required: 1. Calculate ending inventory and cost of goods sold using weighted-average, LIFO, and FIFO cost flow assumptions. 2. Prepare a table showing the resulting values of cost of goods sold and ending inventory using the three different cost flow assumptions. 3. Which value results in the largest net income for the firm? Why? 4. Which value results in the largest ending inventory balance for the firm? Why? 5. Which assumption yields the "right" answer? Why? 6. Which cost flow assumptions are allowed for IGAAP? Template for Problem 7B-1; Requirement 1 Name: Lab Section Time: TA Name: Beg Balance: Purchases: Price per Unit Quantity Date Weighted Average: Inventory FIFO: Inventory LIFO: Inventory Template for Problem 7B-1; Requirement 2 Weighted Ave LIFO FIFO COGS Ending inventory Relative size of NI Requirement 3, 4, 5 and 6