Jepson Electronic Center beganJulywith60units of merchandise inventory that cost$68each. DuringJuly,the store made the followingpurchases:

Jul. 3 40 units@ $72 each

12 50 units@ 90 each

18 30 units@ 92 each

Jepsonuses the periodic inventorysystem,and the physical count atJuly31 indicates that90units of merchandise inventory are on hand.

1. Determine the ending merchandise inventory and cost of goods sold amounts for theJulyJulyfinancial statements using theFIFO,LIFO, andweighted-averageinventory costing methods. 2. Sales revenue forJulytotaled$26,000.ComputeJepson'sgross profit forJulyusing each method. 3. Which method will result in the lowest income taxes forJepson?Why?Which method will result in the highest net income forJepson?Why?