Volkswagen Inc. sells motors and uses a perpetual inventory system. Shown below are Volkswagen's purchases during July: Purchase Date Unit purchased Unit cost Total cost July 1 1015 200 203000 July 7 2000 205 410000 July 31 1500 210 315000 Total 4515 928000 On July 20, Volkswawen, Inc. sold 2000 units. 1. Compute the cost of goods sold relating to the sale on July 20 and the ending inventory July 31 using the following cost flow assumptions. (Show your solutions, including the number of units and costs per unit) b Average cost First-in, first-out Last-in, first-out ASS $ $ (C) Inventory at July. 31 (2) Cost of Goods Sold 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. b. Which of the three cost flow assumptions will result in the highest income tax expense for the year? Would you expect this usually to be the case? Explain