Athletic World began January with merchandise inventory of 95 crates that cost a total of $3800. During the month Athletic World purchased and sold merchandise as follows.

Jan 5 Purchase 155 crates @ $71 each

13 Sale 180 crates @ $110 each

18 Purchase 193 crates @ 75 each

26 Sale 200 crates @ $114 each

1.

Prepare a perpetual inventory record, using the FIFO inventory costingmethod, and determine the company's cost of goods sold, ending merchandise inventory, and gross profit.

2.

Prepare a perpetual inventory record, using the LIFO inventory costingmethod, and determine the company's cost of goods sold, ending merchandise inventory, and gross profit.

3.

Prepare a perpetual inventory record, using the weighted-average inventory costing method, and determine the company's cost of goods sold, ending merchandise inventory, and gross profit. (Round weighted-average cost per unit to the nearest cent and all other amounts to the nearest dollar.)

4.

If the business wanted to pay the least amount of income taxes possible, which method would it choose?