Presented below is information related to radios for the Singles Company for the month of March.

Date		Transaction		Units In		Unit Cost		Total		Units Sold		Selling Price		Total
July 1		Balance		180		$3.71		$ 668
6		Purchase		1,440		3.42		4,925
7		Sale								540		$7.00		$ 3,780
10		Sale								540		7.22		3,899
12		Purchase		720		4.54		3,269
15		Sale								360		7.53		2,711
18		Purchase		540		5.23		2,824
22		Sale								720		7.90		5,688
25		Purchase		900		5.01		4,509
30		Sale								360		8.18		2,945
		Totals		3,780				$16,195		2,520				$19,023

a. Assuming that the periodic inventory method is used, compute the inventory cost at July 31 under each of the following cost flow assumptions. (Ignore taxes.) 

1. FIFO. 

2. Weighted-average. 

b. Answer the following questions. 

1. Which of the methods used above will yield the highest figure for gross profit for the income statement? Explain why. 

2. Which of the methods used above will yield the highest figure for ending inventory for the statement of financial position? Explain why.