Kao Camping Supplies is nearing the end of its first year of operations on October $31,2020.$The company uses a periodic inventory system and made inventory purchases of $$176,250$during the year as follows:Sales for the year will be $750$ units for $$410,000$ revenue. Expenses other than cost of goods sold will be $$105,000.$ The owner of the company is undecided about whether to adopt FIFO or weighted$-$average costing as the company's method. The company rounds all unit prices to two decimal places in interim calculations.The company has storage capacity for $600$ additional units of inventory. Inventory prices are expected to stay at $$230$ per unit for the next few months. The president is considering purchasing $150$ additional units of inventory at $$230$ each before the end of the year. He wishes to know how the purchase would affect net income before taxes under both the FIFO and weighted$-$average costing methods.Required$1.$ To help the owner make the decision, prepare income statements under FIFO costing and weighted$-$average costing, both without and with the year$-$end purchase of $150$ units of inventory at $$230$ per unit$\mathrm{.}2.$ Compare net income before taxes under FIFO costing without and with the year$-$end purchase. Make the same comparison under weighted$-$average costing. Under which method does the year$-$end purchase have the greater effect on net income before taxes?$3.$ If the company wanted to manipulate net income for the year, is one method more manipulative than the other?