How is this solved?

P6.24 Calculating the Value of Ending Inventory and Cost of Goods Sold: Perpetual Method. Consider the following inventory data for the first two months of the year for CompX International TA 2, 3,4 CHECK FIGURE Total Units Unit Cost Total Cost Beginning inventory on hand January 1 60,000 $2.00 $120,000 Purchases during month January 5 January 20 103,600 293,900 457,500 2.00 2.10 207,200 617,190 $ 944,390 Sales of inventory January 25 February 1 February 8 383,900 Beginning inventory at 73,600 Purchases during month 282,200 . 153,500 509,300 2.20 2.60 $620,840 399,100 $1,019,940 February 23 Sales of inventory February 27 . 407,600 . 101,700 Ending Inventory Required I. Calculate the cost of goods sold and ending inventory for January and February under each of the follow ing methods, assuming use of a perpetual inventory management system: a. FIFO b. LIFO c. Weighted-average 2. Assume that the replacement cost of CompX International's ending inventory is $2.05 per unit on Janu- ary 30 and $2.35 per unit on February 28. Calculate the value of the ending inventory for January and February under each of the following methods: a. FIFO b. LIFO c. Weighted-average 3. Which method FIFO, LIFO, or the weighted-average cost method -should CompX International use when reporting its financial results to its shareholders? Why? How does this decision constrain the com pany's method selection for income tax reporting