The following data relates to the inventory and purchases of item 125 for Sanders Company during May:

Inventory, May 1 .................................520 units at $21.00
Purchases:
May 10 ...............................................380 units at $20.75
May 19 ...............................................280 units at $20.35
May 25 ...............................................320 units at $20.40
Inventory, May 31 ..............................460 units

INSTRUCTIONS
Determine the cost of the ending inventory on May 31 under each of the following methods:

(a) Average cost method;

(b) First-in, first-out (FIFO) method;

(c) Last-in, first-out (LIFO) method. When using the average cost method, compute the unit cost to two decimal places.

Analyze: Which inventory amount will result in the highest income for the period?