Following is partial information for the income statement of Timber Company under three different inventory costing methods, assuming the use of a periodic inventory system:

Required:
1. Compute cost of goods sold under the FIFO, LIFO, and weighted average inventory costing methods.
2. Prepare an income statement through pretax income for each method.
3. Rank the three methods in order of income taxes paid (favorable cash flow) and explain the basis for yourranking.

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FIFO LIFO Weighted Average Cost of goods sold Beginning inventory (350 units) Purchases (475 units) $11,200 $1,200 17,100 $11,200 17,100 17,100 Goods available for sale Ending inventory (545 units) Cost of goods sold Sales, 280 units; unit sales price, $50 Expenses, S1,700