MAC Industries completed the following inventory transactions during the month of August:

Requirements 1. Without resorting to calculations, determine which inventory method will result in MAC Industries 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.

Transcribed Image Text:

Date Item Quantity Unit Cost Aug 1 Balance 25 $80 4 Purchase 40 $78 12 Sale 52 22 Purchase 30 $77 31 Sale 22