You Design Shirts, Inc. (YDSI) specializes in logo-imprinted t-shirts. YDSI tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the accounting period, December 31. The inventory's selling price is $12 per unit. Unit Cost $4.50 Total Cost $1,350 Transactions Inventory December 1 Sale, December 10 Purchase, December 12 Sale, December 17 Purchase, December 26 Units 300 (250) 350 (200) $5.00 $1,750 $6.00 80 $480 Required: 1. Compute the cost of goods available for sale at December 31. [1 mark] 2. Compute the ending inventory, and cost of goods sold at December 31, under each of the following inventory costing methods: a) Specific identification, assuming that the December 10 sale was from the beginning inventory and the December 17 sales was the December 12 purchase. [2 marks] Cost of goods sold = Ending Inventory = Problem 5 continued on the next page.. b) First-in, first-out [2 marks] Cost of goods sold = Ending Inventory = c) Weighted average method [2 marks] Cost of goods sold = Ending Inventory = Problem 5 continued on the next page....... 3. Of the three methods, which will result in the highest gross profit? [1 mark] 4. Of the three methods, which will result in the lowest amount of income tax expense? [1 mark] 5. Of the three methods, which will result in the highest current ratio? [1 mark] 6. Using the First-in, first-out method, calculate to one decimal place the inventory turnover ratio and days to sell in the current year, assuming that inventory was $500 on January 1 of this year and cost of goods sold up to December 1 was $19,000. Evaluate these measures in comparison to an inventory turnover ratio of 12.0 during the previous year. [3 marks]