Edwards Company began operations in February 2019. Edwards accounting records provide the following data for the remainder of 2019 for one of the items the company sells:

Edwards uses a periodic inventory system. All purchases and sales were for cash.
Required:
1. Compute cost of goods sold and the cost of ending inventory using FIFO.
2. Compute cost of goods sold and the cost of ending inventory using LIFO.
3. Compute cost of goods sold and the cost of ending inventory using the average cost method?

4. Prepare the journal entries to record these transactions assuming Anderson chooses to use the FIFO method.

5. Which method would result in the lowest amount paid for taxes?

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Purchase Price Sale Price Activity Units (per unit) (per unit) Beginning inventory Purchase 1, Feb. 15 Purchase 2, Mar. 22 Sale 1, Apr. 9 Purchase 3, May 29 Sale 2, July 10 Purchase 4, Sept. 10 Sale 3, Oct. 15 $58 72 80 $150 10 86 15 150 96 12 150