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 $31.$

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:

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 $30.$

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.

Req $1$A

Req $1$B

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.$)$