1. Prepare a partial income statement through gross profit under the average, FIFO, and LIFO methods. Round average cost per unit to four decimal places and all other amounts to the nearest whole dollar.

2. Which inventory method would you use to minimize income tax? Explain why this method causes income tax to be the lowest.

Inventory Aug 1 Balance 800 units @ $5.00 $4,000 Nov 5 Purchase 500 units @ $6.80 3,400 Jan 24 Purchase 8,000 units @ $7.00 56,000 Apr 8 Purchase 700 units @ $8.00 5,600 Sales Revenue Jul 31 9,050 units $133,035 1. Prepare a partial income statement through gross profit under the average, FIFO, and LIFO methods. Round average cost per unit to four decimal places and all other amounts to the nearest whole dollar. 2. Which inventory method would you use to minimize income tax? Explain why this method causes income tax to be the lowest