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.

Transactions	Units				Unit Cost
Beginning inventory, January 1		220			$	26
Transactions during the year:
a. Purchase on account, March 2		310				28
b. Cash sale, April 1 ($42 each)		(370	)
c. Purchase on account, June 30		270				32
d. Cash sale, August 1 ($42 each)		(90	)

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. e. Of the four methods, which will result in the highest gross profit? Which will result in the lowest income taxes?