At the beginning of the current period, a company carried $1,000$ units of its product

with a unit cost of $$33.$ A summary of purchases during the current period follows.

Also, during the current period, the company sold $3,450$ units.

Required

In general, explain if inventory costs are rising, which inventory costing method$-$first$-$

in$,$ first$-$out; last$-$in$,$ first$-$out; or average cost$-$yields the $($a$)$ lowest ending inventory?

$($b$)$ lowest net income? $($c$)$ largest ending inventory? $($d$)$ largest net income? $($e$)$ greatest

cash flow, assuming the same method is used for tax purposes?

Assume that the company in this example uses the first$-$in$,$ first$-$out method.

Compute both cost of goods sold for the current period and the ending inventory

balance. Use the financial statement effects template to record cost of goods sold for

the period.

Assume that the company in this example uses the last$-$in$,$ first$-$out method.

Compute both cost of goods sold for the current period and the ending inventory

balance.

Assume that the company in this example uses the average cost method. Compute

both cost of goods sold for the current period and the ending inventory balance.