Scrappers Supplies tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31. Units 220 Unit Cost $24 Transactions Beginning inventory, January 1 Transactions during the year: a. Purchase on account, March 2 b. Cash sale, April 1 ($40 each) c. Purchase on account, June 30 d. Cash sale, August 1 ($40 each) 26 310 (370) 270 (80) 30 TIP: Although the purchases and sales are listed in chronological order, Scrappers determines the cost of goods sold after all of the purchases have occurred. Required: 1. Compute the cost of goods available for sale, cost of ending inventory, and cost of goods sold at December 31 under each of the following inventory costing methods: (Round "Cost per Unit" to 2 decimal places.) a. Last-in, first-out. b. Weighted average cost. c. First-in, first-out. d. Specific identification, assuming that the April 1 sale was selected one-fifth from the beginning inventory and four-fifths from the purchase of March 2. Assume that the sale of August 1 was selected from the purchase of June 30. 2. Of the four methods, which will result in the highest gross profit? Which will result in the lowest income taxes? Complete this question by entering your answers in the tabs below. Reg 1A Req 1B Req 1C Req 1D Req 2A Req 2B Req 1A Req 1B Req 10 Req 10 Req 2A Req 2B a. Compute the cost of goods available for sale, cost of ending inventory, and cost of goods sold at December 31 using the LIFO method. (Round "Cost per Unit" anwers to 2 decimal places.) LIFO (Periodic) Cost per Units Total Unit $ 24.00 $ 5,280 Beginning Inventory 220 Purchases March 2 310 $ 26.00 June 30 270 $ 30.00 Total Purchases 580 16,160 20,100 Goods Available for Sale 750 Cost of Goods Sold Units from Beginning Inventory Units from March 2 Purchase 0 24.00 $ $ 150 26.00 Units from June 30 Purchase 250 $ 30.00 Total Cost of Goods Sold 400 11,400 8,700 Ending Inventory 350 Reg 1A Reg 1B Req 10 Req 1D Reg 2A Req 2B b. Compute the cost of goods available for sale, cost of ending inventory, and cost of goods sold at December 31 using Weighted average method. (Round "Cost per Unit" anwers to 2 decimal places.) Weighted Average Cost (Periodic). Units Total Cost per Unit $ 24.00 Beginning Inventory 200 $ 4,800 Purchases March 2 300 $ 26.00 June 30 250 $ 30.00 Total Purchases 550 15,300 Goods Available for Sale 750 Cost of Goods Sold 400 $ 26.80 20,100 $ 10,720 $ 9,380 Ending Inventory 350 Req 1A Req 1B Req 1C Req 1D Req 2A Req 2B c. Compute the cost of goods available for sale, cost of ending inventory, and cost of goods sold at December 3 FIFO method. (Round "Cost per Unit" anwers to 2 decimal places.) FIFO (Periodic) Cost per Units Total Unit 200 $ 24.00 $ 4,800 Beginning Inventory Purchases March 2 300 26.00 June 30 250 $ 30.00 Total Purchases 550 15,300 20,100 Goods Available for Sale 750 Cost of Goods Sold Units from Beginning Inventory 200 24.00 Units from March 2 Purchase 200 A A A 26.00 Units from June 30 Purchase 0 $ 30.00 Total Cost of Goods Sold 400 10,000 $ 10,100 Ending Inventory 350 d. CCompute the cost of goods available for sale, cost of ending inventory, and cost of goods sold at December 31 using the Specific identification method. Assume that the April 1 sale was selected one-fifth from the beginning inventory and four-fifths from the purchase of March 2. Assume that the sale of August 1 was selected from the purchase of June 30. (Round "Cost per Unit" anwers to 2 decimal places.) Show less A Specific Identification (Periodic) Units Cost per Total Unit $ 24.00 $ 5,280 220 Beginning Inventory Purchases March 2 310 $ 26.00 June 30 270 $ 30.00 Total Purchases 580 16,160 20,100 Goods Available for Sale 750 Cost of Goods Sold 70 $ 24.00 Units from Beginning Inventory Units from March 2 Purchase 280 $ 26.00 Units from June 30 Purchase 50 $ 30.00 Total Cost of Goods Sold 400 10,460 Ending Inventory 350 $ 9,640 Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 1c Req 10 Req 2A Req 2B Of the four methods, which will result in the highest gross profit? Last-in, first-out Weighted average cost First-in, first-out Specific identification Which will result in the lowest income taxes? OLast-in, first-out OWeighted average cost OFirst-in, first-out Specific identification