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

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?