CP7-1 (Algo) Analyzing the Effects of Four Alternative Inventory Costing Methods [LO 7-3] Scrappers Supplies tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31. TIP: Although the purchases and sales are listed in chronologicol ordet, Scrappers determines the cost of goods sold after all of the purchases have occurred Required: 1. Compute the cost of goods avalibble for sole, cost of ending inventory, and cost of goods sold at December 31 under each of the following inventory costing methods: (Round "Cost per Unit" to 2 decimal places.) a. Last-in, first-out. b. Weighted avorage cost c. First-in, first-out. d. Specific identification, assuming that the April 1 sale was selected one-fith from the beginning inventory and four-fiths from the purchase of March 2. Assume that the sale of August 1 was selected from the purchase of June 30 . 2. Of the four methods, which will result in the highest gross profit? Which will result in the lowest income taxes? a. Compute the cost of goods available for sale, cost of ending inventory, and cost of goods sold at LIFO method. (Round "Cost per Unit" anwers to 2 decimal places.) b. Compute the cost of goods available for sale, cost of ending inventory, and cost of goods sold at De Weighted average method. (Round "Cost per Unit" anwers to 2 decimal places.) c. Compute the cost of goods available for sale, cost of ending inventory, and cost of goods sold at December 31 using the FIFO method. (Round "Cost per Unit" anwers to 2 decimal places.) d. Compute the cost of goods avallable for sale, cost of ending inventory, and cost of goods sold at December 31 using the Specific identification method. Assume that the April 1 sale was selected one-fift from the beginning inventory and four-fifths from the purchase of March 2. Assume that the sale of August 1 was selected from the purchase of June 30 . (Round "Cost per Unit" anwers to 2 decimal places.)