Problem 5-8A4 QP Corp. sold 4,000 units of its product at $50 per unit during Periodic: Income of $5 per unit in selling the units. It began the year with 700 units in inventory and made successive pur- comparisons and cost flows chases of its product as follows. 2 Jan, 1 Beginning inventory.......... 700 units @ $18 per unit Feb. 20 Purchase... . . .it. ...Are 1,700 units @ $19 per unit May 16 Purchase ...... . 800 units @ $20 per unit Oct. 3 Purchase 500 units @ $21 per unit Dec. 11 Purchase ,,. . . . . 2,300 units @ $22 per unit Total . .. . 6,000 units Required 1. Prepare comparative year-end income statements for the three inventory costing methods of FIFO, LIFO, and weighted average. (Round all amounts to cents.) Include a detailed cost of goods sold section as part of each statement. The company uses a periodic inventory system. 2. How would the financial results from using the three alternative inventory costing methods change if the company had been experiencing declining costs in its purchases of inventory? 3. What advantages and disadvantages are offered by using (a) LIFO and (b) FIFO? Assume the continu- ing trend of increasing costs