Q3. For each of the following situations, identify the inventory method that you would use or, given the use of a particular method, state the strategy that you would follow to accomplish your goal: a. Inventory costs are increasing. Your company uses weighted-average cost and is having an unexpectedly good year. It is near year-end, and you need to keep net income from increasing too much in order to save on income tax. b. Suppliers of your inventory are threatening a labour strike, and it may be difficult for your company to obtain inventory. This situation could increase your income taxes. C. Inventory costs are decreasing, and your company's board of directors wants to minimize income taxes. d. Inventory costs are increasing, and the company prefers to report high income.e. Inventory costs have been stable for several years, and you expect costs to remain stable for the indefinite future. (Give the reason for your choice of method.) ABOL AaBbcc 1 No Spac... Heading 1 Heading 2 Title Subtitle Suti 1 Normal Paragraph Styles . . Q4. Suppose Holt Renfrew, the specialty retailer, had these records for ladies' evening gowns during 2017 Beginning inventory (30 @ $1,000) $30,000 Purchase in February (25 @ $1,100) 27,500 Purchase in June (60 @ $1,200) 72,000 Purchase in December (25 @ $1,300) 32,500 Goods available $162,000 Assume sales of evening gowns totalled 130 units during 2017 and that Holt uses the weighted- average-cost method under the periodic inventory system to account for inventory. The income tax rate is 30%. Requirements: 1. Compute Holt's cost of goods sold for evening gowns in 2017. Deco 2. Compute what cost of goods sold would have been if Holt had purchased enough inventory in December-at $1,300 per evening gown-to keep year-end inventory at the same level it was at the beginning of the year, 30 units. 1 o c TI * B