Suppose that Old Navy uses the periodic inventory system and had the following inventory information available:

Units

Unit Cost

Total Cost

$1/1$

Beginning Inventory

$124$

$$4$

$$496$

$1/20$

Purchase

$620$

$$5$

$3\mathrm{.}100$

$7/25$

Purchase

$124$

$$7$

$868$

$10/20$ Purchase

$372$

$$8$

$2\mathrm{.}976$

total $1,240$

$$7,440$

A physical count of inventory on December $31$ revealed that there were $434$ units on hand.

Answer the following independent questions.

$1.$

Assume that the company uses the FIFO method. The cost of the ending inventory at December $31$ is $$\_\_\_\_\_\_\_$

$2.$Assume that the company uses the average$-$cost method. The cost of the ending inventory on December $31$ is $$\_\_\_\_\_\_\_$

$3.$Assume that the company uses the LIFO method. The cost of the ending inventory on December $31$ is $$\_\_\_\_\_\_\_\_\_$

$4.($a$)$ Determine the difference in the amount of income that the company would have reported if it had used the FIFO method instead of the LIFO method $$\_\_\_\_\_\_$

$4.($b$)$

Would income have been greater or less?