The records of Sonic Sound Systems Inc. include the following for cases of CDs at December 31, 2014:

Requirements
1. Prepare a partial income statement through gross profit under the weighted-average-cost and FIFO cost methods assuming the periodic system is used. Round weighted-average cost per unit to four decimal places and all other amounts to the nearest dollar.
2. Which inventory method would you use to report the highest net income? Explain why this method produces the highest reported income.

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Inventory Jan. 1 Balance 300 cases s300 121,300 100 cases313 May 19 Purchase 600 cases 333 201,000 Aug. 12 Purchase 400 cases 330 140,000 Oct. 4 Purchase 700 cases 370 259,000 Sales Revenue Dec. 3 1,800 cases 910,000