For Month Ended August 31 Specific Identification FIFO Weighted Average LIFO $ 6,050 4,570 1,480 $ 6,050 4,582 1,468 450 1,018 305 $ 713 $6,050 4,730 1,320 450 Income Statement Sales Cost of goods sold .............. Gross profit Expenses ... . Income before taxes ............... Income tax expense (30%)............ Net income .................... Balance Sheet Inventory ............ $ 6,050 4,622 1,428 450 978 450 870 1,030 309 261 293 $ 721 $ 609 $ 685 $1,408 $1,420 $1,260 $1,368 During a period of regularly rising purchase costs, the method yields the highest reported cost of goods sold amount on the income statement. Knowledge Check 02 Complete each sentence by selecting the correct term using the drop-down list. During a period of regularly rising purchase costs, the method yields the lowest income tax expense