E8-16 (Compute FIFO, LIFO, Average Cost-Periodic) Present below is information related to radios for the couples' company for the month of July

UnitUnitUnitSelling

Date Transaction InCost TotalSold priceTotal

July 1Balance100$4.10$ 410

6Purchase8004.33,440

7Sale300$7.00$ 2,100

10Sale3007.302,190

12Purchase4004.511,804

15Sale2007.401,480

18Purchase3004.601,380

22Sale4007.402,960

25 Purchase3004.582,290

30Sale---------2007.501,500

Totals$2,100$9,3241400$10,230

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

(1)FIFO.

(2)LIFO

(3)Weighted- the following questions.

b)Answer the following questions.

(1)Which of the methods used above will yield the lowest figure for gross profit for the income Statement? Explain why.

(2)Which of the methods used above will yield the lowest figure for ending inventory for the balance sheet? Explain why.