P6-57A. (Learning Objective 2: Compare various inventory costing methods) The records of Fisher Aviation include the following accounts for inventory of aviation parts at July 31 of the current year: Aug 1 Nov 5 Jan 24 Apr 8 Balance 720 units @ $7.15 Purchase 400 units @ $7.20 Purchase 8,420 units @ $7.60 Purchase 480 units @ $8.30 Inventory S 5,148 2,880 63,992 3,984 | Sales Revenue Jul 31 9,045 units $128,560 Requirements 1. Prepare a partial income statement through gross profit under the average, FIFO, and LIFO methods. Round average cost per unit to two decimal places and all other amounts to the nearest dollar. 2. Which inventory method would you use to minimize income tax? Explain why this method causes income tax to be the lowest