Problem 4: (14 points, 15 min) Nelson Framing began December 2009 with 73 units of inventory that cost $23 cach. During the month, Nelson made the following purchases: December 4 December 12 December 19............... December 25 113 units @ $26 81 units @ 30 167 units @32 44 units @ 35 *** *** The business uses the periodic inventory system, and the physical count at 31 December includes 51 units of inventory on hand. Required 1. Determine the ending inventory and cost-of-goods-sold amounts for the month of December financial statements under (a) average cost, (b) FIFO cost. Round average cost per unit to the nearest cent and all other amounts to the nearest dollar. 2. Sales revenue for the month of December totaled $20,000. Calculate Nelson's gross profit for December under each method above. 3. Which method above results in the lowest income taxes for Nelson? Why? 4. Which method above results in the highest net profit for Nelson? Why