Inventory valuation methods are based on assumption of inventory flow. Complete the following exercise Powel's Powerskis, Inc. uses a periodic inventory system. The following transactions occurred during December 2012: December Number of Units Cost per Unit 1 Beginning inventory 24 415 8 Purchase 415 15 Purchase 420 20 Purchase 435 22 Purchase 390 On December 31, there were 4 units remaining in ending inventory. Compute ending inventory and cost of goods sold using FIFO, LIFO and Weighted Average inventory costing. DISCUSS: 1. Which method yields higher net income? (Hint: Higher Ending Inventory means lower COGS. Lower COGS (COGS is an expense account) = Higher Net Income) 2. Which method would a business choose under the income statement approach? 3. Which method would a business choose under the Balance Sheet approach