E$7-9($Algo$)$ Evaluating the Choice among Three Alternative Inventory Methods Based on Cash Flow Effects LO$7-2,7-3$

Following is partial information for the income statement of Audio Solutions Company under three different inventory costing methods, assuming the use of a periodic inventory system:

Required:

Compute cost of goods sold under the FIFO, LIFO, and average cost inventory costing methods.

Prepare an income statement through pretax income for each method.

Sales, $328$ units; unit sales price, $$51$; Expenses, $$1,500$

Rank the three methods in order of income taxes paid $($favorable cash flow $-$ that is$,$ rank the method as $1$ if it produces the lowest taxes, and $3$ if it produces the highest taxes.$).$