Alfageo Company was formed on December 1, 2018. The following information is available from

Alfageo's inventory record for Product X.

UnitsUnit Cost

January 1, 2019 (beginning inventory)1,600$18.00

Purchases:

January 5, 20192,600$20.00

January 25, 20192,400$21.00

February 16, 20191,000$22.00

March 15, 20191,800$23.00

A physical inventory on March 31, 2019, shows 2,500 units on hand.

Instructions

Prepare schedules assuming the periodic method to compute the ending inventory at March 31, 2019,

under each of the following inventory methods:

(1) FIFO.

(2) Weighted-average.

Show supporting computations in good form.

(3) In an inflationary period which inventory method- FIFO or average cost-will show the highest net

income?