Urgent

Problem 2 (25 points) Garden Wholesales Ltd. uses a perpetual inventory system. The company's records show the beginning inventory of irrigation systems on January 1 and the purchases of this item during this period to be as follows: Jan. 1 Beginning inventory87 units@$199 S 17.313 50 units@ $20910,450 64 units$21914,016 Oct. 23 Purchase. 28 units $2326.496 $48.275 Mar. 8 Purchase Aug. 11 Purchase 201 units On April 25, Garden Wholesales Ltd. sold 40 irrigations systems to Gardens&Friends Ltd. 1. Compute the cost of goods sold relating to the sale on April 25 and the ending inventory of units at June 30, en of the fiscal year, using the folowing cost flow assumptions. (15 points) (Show the number of units and the unit costs of each layer) Cost of Inventory Goods Sold at June 30 a Average cost b First-in, first-out c Last-in, first-out 2. Using the cost figures computed above, answer the following questions: a. Which of the three cost flow assumptions will result in the company reporting the lowest net income for the current year? Would this always be the case? Explain. (5 points) b. Which of the three cost flow assumptions will result in the highest income tax expense for year? Would you expect this usually to be the case? Explain. (5 points)