Question: Answer the following question: The controller at SOT Inc. is finalizing the company's financial statements for its first year of operations. She was reviewing the

Answer the following question:

The controller at SOT Inc. is finalizing the company's financial statements for its first year of operations. She was reviewing the company's inventory purchases for the year and noticed the following trend in unit prices paid: January $21/unit; June $25/unit; October $29/unit. In order to impress investors and bankers, the controller wants to show high net earnings for the first year. The inventory on hand at the end of the year consists of inventory from October purchases only.

Which inventory costing method should the company adopt?

a) The method required by the tax authorities.

b) Weighted average

c) Impossible to answer with only the information given.

d) Specific identification

e) All methods result in the same net income.

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