Harrington Company had the following data for inventory during a recent year:

Assume that Harrington uses a periodic inventory accounting system.
Required:
1. Using the FIFO, LIFO, and average cost methods, compute the ending inventory and cost of goods sold.
2. Which method will produce the most realistic amount for income? For inventory?
3. Which method will produce the lowest amount paid for taxes?

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Units Cost per Unit Total Cost $9.00 9.40 10.20 10.80 11.30 4,500 Beginning inventory Purchase 1, Jan. 28 Purchase 2, May 2 Purchase 3, Aug. 13 Purchase 4, Nov. 9 Total purchases Goods available for sale Less: Sales Ending inventory 500 1,600 1,200 1,400 1,100 $15,040 12,240 15,120 12,430 5,300 5,800 (5,240) 54,830 $59,330 560