ROUP B PROBLEMS ing the Effects of Four Alternative Inventory Methods in a Periodic connect 97.1 Analyzing the Effects of Four Inventory System ACCOUNTING LO 7-3 Mojo Industries tre but applies its iny fory system. Assum accounting period, Jan tries tracks the number of units purchased and sold throughout each accounting period eits inventory costing method at the end of each period, as if it uses a periodic inven- Assume its accounting records provided the following information at the end of the o period, January 31. The inventory's selling price is $9 per unit. Transactions Unit Cost Units Total Cost $250 250 $625 Inventory, January 1 Sale, January 10 Purchase, January 12 Sale, January 17 Purchase, January 26 300 (200) 500 1.50) 20 900 320 Required: Compute the amount of goods available for sale, ending inventory, and cost of goods sold at January 31 under each of the following inventory costing methods: a. Weighted average cost. b. First-in, first-out. c. Last-in, first-out. d. Specific identification, assuming that the January 10 sale was from the beginning inven- tory and the January 17 sale was from the January 12 purchase. 2. Of the four methods, which will result in the highest gross profit? Which will result in the lowest income taxes