Swifty Distribution markets CDs of numerous performing artists. At the beginning of March, Swifty had in beginning inventory $3,900$ CDs with a unit cost of $$7.$ During March, Swifty made the following purchases of CDs$.$

$\backslash$table$[[$March $5,4,875,$@$,$$$8,$March $21,7,850],[$March $13,6,825,$@$,$$$9,$March $26,5,800]]$

During March $21,000$ units were sold. Swifty uses a periodic inventory system.

Which cost flow method results in $(1)$ the highest inventory amount for the balance sheet and $(2)$ the highest cost of goods sold for the income statement?

FIFO

produces the highest inventory amount for the balance sheet, $

LIFO

Average$-$cost produces the highest cost of goods sold on the income statement, $

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