I'd appreciate it if you could answer me in detail.

Compute ending inventory, prepare income statements, and answer ques- tions using FIFO and average-cost. P6.4 (LO 2) Writing The management of Gisel Group is reevaluating the appropriateness of using its present inventory cost flow method. They request your help in determining the results of operations for 2020 if either the FIFO method or the average-cost method had been used. For 2020, the accounting records show the following data. Inventories Purchases and Sales Beginning (10,000 units) 22,800 Total net sales (225,000 units) 865,000 Ending (15,000 units) Total cost of goods purchased (230,000 units) 578,500 Purchases were made quarterly as follows. Quarter Units Unit Cost Total Cost 1 60,000 2.30 138,000 2 50,000 2.50 125,000 50,000 2.60 130,000 4 70,000 2.65 185,500 230,000 578,500 a. Net income: FIFO 106,386 Average 104,907 Operating expenses were 147,000, and the company's income tax rate is 32%. Instructions a. Prepare comparative condensed income statements for 2020 under FIFO and average-cost. (Show computations of ending inventory.) b. Answer the following questions for management. 1. Which cost flow method (FIFO or average-cost) produces the more meaningful inventory amount for the statement of financial position? Why? 2. Which cost flow method (FIFO or average-cost) is more likely to approximate actual physical flow of the goods? Why? 3. How much additional cash will be available for management under average-cost than under FIFO? Why? b. 3. 696