Presented below is information related to Blowfish radios for Hootie Company for the month of July.

Instructions
(a) Assuming that the periodic inventory method is used, compute the inventory cost at July 31 under each of the following cost flow assumptions.
(1) FIFO.
(2) LIFO.
(3) Weighted-average. (Round the weighted-average unit cost to the nearest one-tenth of one cent.)
(b) Answer the following questions.
(1) Which of the methods used above will yield the lowest figure for gross profit for the income statement? Explain why.
(2) Which of the methods used above will yield the lowest figure for ending inventory for the balance sheet? Explainwhy.

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Units Unit Selling Units Sold Date Transaction Total 100 $4.10 410 3,360 July 1 Balance 4.20 7 Sale $7.00 $ 2,100 12 15 18 Purchase 22 Sale 25 Purchase 30 Sale 4.50 4.60 4.58 7.30 7.40 7.40 7.50 2,190 1,480 2,960 1,500 $10,230 Purchase 1,800 1,380 2,290 300 Totals 2,100 $9,240 1,400