Harris Bearing Company uses the periodic inventory system to account for its inventory. The following information was available from the companys inventory records for October:

Purchases

10/1 (balance) 2,400 units @$10

10/12 3,000 units @$5

10/25 1,500 units @$9

Sales

10/14 3,800 units @$16

10/30 1,700 units @21

1. Calculate cost of goods sold and gross profit to be reported on Harriss Income Statement of October by using
   1. average cost method.
   2. FIFO costing method.
   3. LIFO costing method.

2. Calculate Harriss cost of ending inventory as of October 31 by using
   1. average cost method.
   2. FIFO costing method.
   3. LIFO costing method.

3. Assuming that you are a manager of Harris Bearing and is asked to choose one of the inventory flow methods (average, FIFO or LIFO) to account for Harriss inventory. Based on your calculation in 1 and 2, which method will you choose? Please provide a brief explanation.