Required: 1. Compute cost of goods sold under the FIFO, LIFO, and average cost inventory costing methods. 2. Prepare an income statement through pretax income for each method. Sales, 500 units; unit sales price, $60; Expenses, $1,100 3. Rank the three methods in order of preference based on income taxes paid (favorable cash flow). Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute cost of goods sold under the FIFO, LIFO, and average cost inventory costing methods. FIFO LIFO Average Cost Cost of goods sold Beginning inventory (700 units $40) $ 28,000 $ 28,000 $ 28,000 Purchases (700 units @ $20) 14,000 14,000 14,000 42,000 42,000 42,000 Goods available for sale Ending inventory (900 units) Cost of goods sold