Scoresby Inc. uses a perpetual inventory system. At December $31,2021,$ the company's accounting records provided the following information for Product B: Units $7,000$ Unit Cost $ & $9$ Transactions a$.$ Inventory, December $31,2020$ For the year $2021$: b$.$ Purchase, March $5$ c$.$ Sale, June $15($$$29$ each$)$ d$.$ Purchase, September $19$ e$.$ Sale, November $20($$$31$ each$)$ f$.$ Operating expenses $($excluding income tax expense$),$ $$500,00019,00010,0008,00016,00011$ Required: $1.$ Prepare a statement of earnings for $2021$ through pretax earnings, showing the detailed computation of cost of sales for two cases: a$.$ Case A$-$FIFO b$.$ Case B$-$Weighted average $($Round intermediate calculations to $2$ decimal place.$)$ SCORESBY INC. Statement of Earnings For the Year Ended December $31,2021$ Case A FIFO Case B Weighted Average Cost of sales: $2.$ Compare the two cases with regard to the pretax earnings and the ending inventory amounts. Comparison of Amounts Case A Case B FIFO Weighted Average Pretax earnings Difference Ending Inventory Difference $3.$ Which inventory costing method may be preferred for income tax purposes? Weighted average FIFO