E7-10 (Algo) Evaluating the Choice among Three Alternative Inventory Methods Based on Cash Flow Effects LO7-2, 7-3 Following is partial information for the income statement of Arturo Technologies Company under three different inventory costing methods, assuming the use of a periodic inventory system: Required: 1. Compute cost of goods sold under the FIFO, LIFO, and average cost inventory costing methods. 2. Prepare an income statement through pretax income for each method. Sales, 600 units: unit sales price. $70; Expenses. $800 3. Rank the three methods in order of preference based on income taxes paid (favorable cash flow). Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute cost of goods sold under the FIFO, LIFO, and average cost inventory costing methods FIFO Average LIFO Cost of goods sold Beginning inventory (700 units @ $40) $ 28,000 $ 28,000 28.000 Purchases (700 units @ $30) 21,000 21.000 21.000 Goods available for sale Ending inventory (B00 units) Cost of goods sold Required 2