i X Inventory records 6 units @ $ 160 = $ 960 Mar. 1 Beginning inventory 15 Purchase ... 8 units @ 165 = 1,320 26 Purchase 6 units @ 170 = 1,020 At March 31, ten of these programs are on hand. Print Done Limerick Inc. inventory records for a particular development program show the following at March 31, 2020: (Click the icon to view the inventory records.) Limerick uses the perpetual inventory system. Requirements 1. Compute cost of goods sold and ending inventory, using each of the following methods: a. Specific unit cost, with two $160 units, three $165 units, and five $170 units still on hand at the end b. Weighted average cost c. First-in, first-out cost 2. Which method would be most relevant to producing the highest net income? Why? Requirement 1a. Compute cost of goods sold and ending inventory using the specific unit cost method, with two $160 units, three $165 units, and five $170 units still on hand at the end. (Enter 'O' in fields with a value of zero.) Cost of Goods Sold Ending Inventory 2 units @ $ 160 3 units @ 165 4 units @ $ 160 6 units @ 165 $320 $495 $850 units @ 170 5 units @ 170 Requirement 1b. Compute cost of goods sold and ending inventory using the weighted average cost method. (Round the unit costs to the nearest whole dollar.) Requirement 1b. Compute cost of goods sold and ending inventory using the weighted-average cost method. (Round the unit costs to the nearest whole dollar.) Cost of Goods Sold Ending Inventory units units Requirement 1c. Compute cost of goods sold and ending inventory using the first-in, first-out cost method. (Enter 'O' in fields with a value of zero.) Cost of Goods Sold units @ $160 Ending Inventory units @ $160 units @ 165 units @ 165 units @ 170 units @ 170 Requirement 2. Which method would be most relevant to producing the highest net income? Why? Weighted-average produces the highest net income because the cost of goods sold is the at $ produces the lowest net income because the cost of goods sold is the at $ The per unit causes the difference in the cost of goods sold. With the lowest cost item is sold first. More items at higher cost were sold with the method, and the increase in cost of purchases raised the average cost of items sold with the method