Widget, Corp. completed the following inventory transactions during the month of January:

Requirements
1. Without resorting to calculations, determine which inventory method will result in Widget, Corp. paying the lowest income taxes.
2. Prepare a perpetual inventory record using FIFO.
3. Prepare a perpetual inventory record using average cost.

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Quantity Date Jan 1 Balance Item Unit Cost $50 $55 15 4 Purchase 12 Sale 22 Purchase 31 Sale 35 24 $58