Data table Inventory Aug 1 Balance 700 units @ $ 6.00 $ 4,200 Nov 5 Purchase 400 units @ $ 6.50 2,600 Jan 24 Purchase 7,300 units @ $ 7.00 51,100 Apr 8 Purchase 600 units @ $8.50 5,100 Requirements 1. Prepare a partial income statement through gross profit under the average, FIFO, and LIFO methods. Round average cost per unit to two decimal places and all other amounts to the nearest dollar. 2. Which inventory method would you use to minimize income tax? Explain why this method causes income tax to be the lowest. Requirement 2. Which inventory method would you use to minimize income tax? Explain why this method causes income tax to be the lowest. Use the method to minimize income tax because cost of goods sold is highest (gross profit is lowest) under when inventory costs are