Units Unit cost Total cost $4.00 $5.00 $6.00 $8.00 $4,000 $6,000 $9,600 $6,400 Beginning inventory Purchases #1 #2 #3 1,000 1,200 1,600 800 Sales 3,200 units sold Calculate the $ ending inventory and $cost of goods sold using each of the following inventory methods: 1. a. FIFO b. LIFO C. Average cost Method Ending inventory $ COGS S FIFO LIFO Average cost 2. Which inventory method would you recommend for reporting for income tax purposes to minimize taxable income? Why? 3. The company is operating in an inflationary environment. Which method should the company use to maximize inventory valuation? Why