Comp America completed the following inventory transactions during the month of March:

Requirements
1. Without resorting to calculations, determine which inventory method will result in Comp America paying the lowest income taxes.
2. Prepare a perpetual inventory record using FIFO.
3. Prepare a perpetual inventory record using LIFO.
4. Prepare a perpetual inventory record using average cost. Round average cost per unit to the nearest cent and all other amounts to the nearestdollar.

Transcribed Image Text:

Date Item Quantity Unit Cost Mar 1 Balance 10 50 52 48 40 $100 S 95 4 Purchase 12 Sale 22 Purchase 31 Sale $ 92