Problem for Section 7B 7B-1. PISA SPAGHETTI MAKER Company began the year with 60 units in inventory that cost $88 each. During the year PISA, which uses a periodic inventory system, makes the following purchases of new units: Date Quantity Price per Unit February 22 $103 May 3 96 117 October 9 46 123 December 3 33 138 The physical inventory count at the end of the year showed 110 units in inventory. Required: 1. Calculate ending inventory and cost of goods sold using weighted average, LIFO, and FIFO cost flow assumptions. 2. Prepare a table showing the resulting values of cost of goods sold and ending inventory using the three different cost flow assumptions. 3. Which value results in the largest net income for the firm? Why? 4. Which value results in the largest ending inventory balance for the firm? Why? 5. Which assumption yields the "right" answer? Why? 6. Which cost flow assumptions are allowed for IGAAP? Chapter 7 Section B Template for Problem 7B-1; Requirement1 Name: TA Name: Lab Section Time: Beg Balance: Purchases: Date Quantity Price per Unit Inventory Weighted Average: Inventory FIFO: Inventory LIFO: Template for Problem 7B-1; Requirement 2 FIFO Weighted Ave LIFO COGS Ending inventory Relative size of NI Requirement 3, 4, 5 and 6