Complete Problem 5-12 in Perpetual System

Problem 5-12 Inventory Costing Methods- Perpetual System Oxendine Company's inventory records for the month of November reveal the following: Inventory, November 1 November 4, purchase November 7, sale November 13, purchase November 18, purchase November 22, sale November 24, purchase November 28, sale 200 units $18.00 250 units $18.50 300 units $42.00 220 units $18.90 150 units $19.00 380 units $42.50 200 units $19.20 110 units $43.00 Selling and administrative expenses for the month were $10,800. Depreciation expense was $4,000. Oxendine's tax rate is 35% Required 1. Calculate the cost of goods sold and ending inventory under each of the following three meth ods assuming a periodic inventory system: (a) FIFO, (b) LIFO, and (c) weighted average 2. Calculate the gross profit and net income under each costing assumption. 3. Under which costing method will Oxendine pay the least taxes? Explain your answer. 4. Assume that Oxendine prepares its financial statements in accordance with IFRS. Which cost- ing method should the company use to pay the least amount of taxes? Explain your