E8.13 (LO 3) (Compute FIFO, LIFO, Average-Cost-Periodic) Presented below is informa related to Blowfish radios for the Hootie Company for the month of July. Units Sold Selling Price Total Date July 1 Units In 100 800 Unit Cost $4.10 4.20 Total $ 410 3,360 300 $7.00 7.30 $ 2,100 2,190 300 Transaction Balance Purchase Sale Sale Purchase Sale Purchase Sale Purchase Sale Totals 400 4.50 1,800 200 7.40 1,480 300 4.60 1,380 400 7.40 2,960 500 4.58 2,290 7.50 2,100 1,500 $10,230 $9,240 Instructions a. Assuming that the periodic inventory method is used, compute the inventory cost at July 31 under each of the following cost flow assumptions. 1. FIFO. 2. LIFO. 3. Weighted average. b. Answer the following questions. 1. Which of the methods used above will yield the lowest figure for gross profit for the income statement? Explain why. 2. Which of the methods used above will yield the lowest figure for ending inventory for the balance sheet? Explain why