McGregor Company uses the periodic inventory method and has the following inventory information available: Units Unit Cost Total Cost 1/1 Beginning Inventory 100 $4 $400 1/20 Purchase 500 $5 $2,500 7/25 Purchase 100 $7 $ 700 10/20 Purchase 300 $8 $2,400 1,000 $6,000 A physical count of inventory on December 31 revealed that there were 325 units on hand. 1. Assume that the company uses the FIFO method. What cost of inventory would they report on December 31? 2. Assume that the company uses the average cost method. What cost of inventory would they report on De- cember 312 3. Assume that the company uses the LIFO method. What cost of inventory would they report on December 31? 4. Determine the difference in the amount of income that the company would have reported if it had used the FIFO method instead of the LIFO method. Would income have been greater or less