Q. Keenly observe the figure given and give your opinion on the information by answering the questions below.

1. Which financial statement do you think is prepared by Trekking Company? What is Specific Identification, FIFO, LIFO, or Weighted Average? Explain
2. Explain in your own words the process of these methods with a numerical example for each.
3. Assume that you are the manager of the company mentioned in the figure above which cost method would you prefer, support your answer.

Kindly, I would like a unique answer and writing answer not picture.

TREKKING COMPANY For Month Ended August 31 $ $ Specific Identification Sales $ 6,050 Cost of goods sold 4,582 Gross profit $ 1,468 Operating expenses 450 Income before taxes $ 1,018 Income tax expense (30%) 305 Net income $ 713 $ $ FIFO 6,050 4,570 1,480 450 1,030 309 721 LIFO 6,050 4,730 1,320 450 870 261 609 Weighted Average $ 6,050 4,622 $ 1,428 450 $ 978 293 $ 685 $ $ $ $ Balance sheet inventory $ 1,408 $ 1,420 $ 1,260 $ 1,368