Vaughn Distribution markets CDs of the performing artist Unique. At the beginning of October, Vaughn had in beginning

inventory $2,000$ of Unique's CDs with a unit cost of $$5.$ During October, Vaughn made the following purchases of Unique's CDs$.$

During October, $10,850$ units were sold. Vaughn uses a periodic inventory system.

$(a)$

$(b1)$

$(b2)$

$(c)$

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?

$(1)$

produces the highest inventory amount, $

$(2)$

produces the highest cost of goods sold, $

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