Practice Quiz Inventory Valuation Methods Inventory Data - June 1-30 June 1 Inventory 10 units @ $4.00 June 6 Purchase 10 units @ $6.00 June 13 Sale 12 units @ selling price of $10.00 June 20 Purchase 2 units @ $7.50 June 25 Sale 5 units @ selling price of $11.00 Required: Calculate ending inventory, cost of goods sold and gross profit for each inventory method below (assuming a perpetual inventory system): 1. FIFO 2. LIFO Which inventory method provides the highest profit? Which method provides the best income statement matching? Which method provides the better balance sheet valuation? Is a LIFO liquidation occurring