Problem 4 (25 points) ABC Wholesale Inc, uses a perpetual inventory system. The beginning inventory of a particular product and the purchases during the current year, were as follows: 90 units$129 11,610 30 units@$1564,680 45 units $176 7.920 11 units@ $200 2.200 $26,410 Jan. 1 Beginning inventory... Mar. 8 Purchase . Aug. 11 Purchase... Oct. 23 Purchase. Total available for sale. 165 units On August 15, ABC Wholesale Inc. sold 110 units. The remaining units remained in inventory at December 31, the end of Altman Electric's fiscal year. 1. Compute the cost of goods sold relating to the sale on August 15 and the ending inventory of units using the following cost flow assumptions. (15 points) (Show the number of units and the unit costs of each layer) Cost of Inventory at Dec. 31 Goods Sold a Average cost b First-in, first-out c Last-in, first-out 2. Using the cost figures computed above, answer the following questions: www.eurue.edu a. Which of the three cost flow assumptions will result in the company reporting the lowest ne income for the current year? Would this always be the case? Explain. (5 points) b. Which of the three cost flow assumptions will result in the highest income tax expense for the year? Would you expect this usually to be the case? Explain. (5 points)