Required: 1. Compute cost of goods sold under the FIFO, LIFO, and average cost inventory costing methods. (Do not round intermediate calculations.) Average Cost FIFO LIFO Cost of goods sold $ 14,000 $ 14,000 14,000 Beginning inventory (350 units Purchases (350 units$30) Goods available for sale Ending inventory (550 units) $40) 4,14,00014,000 10,500 10,500 10,500 Cost of goods sold 2. Prepare an income statement through pretax income for each method Sales, 150 units; unit sales price, S70; Expenses, $800 Average Cost FIFO LIFO 3. Rank the three methods in order of preference based on income taxes paid (favorable cash flow) FIFO LIFO Average Cost