Alphonse Bona carries on a business as a sole proprietor in which a single product is sold to retail customers. During his first year of business, purchases of inventory are as follows:

Date Quantity Price Total Cost

January20 10,300 $2.50 $ 25,750

March12 11,400 $2.75 31,350

June15 12,600 $3.15 39,690

October8 10,200 $3.27 33,354

December9 8,600 $2.85 24,510

Totals 53,100 $154,654

On December 31, the fiscal period of the business, there are 19,400 inventory units on hand. It is estimated that these units have a replacement cost of $2.90 per unit and a net realizable value of $3.18 per unit.

Required: Calculate the various closing inventory values that could be used to determine business income. Your answer should indicate the valuation method being used that you recommend to minimize taxes.