Refer to Questions 9 and 10. Which method might be preferable for financial statements? For income tax reporting? Explain.

Data From Question 10:-

Assume that Key Co. purchased 1,500 units of merchandise in its second year of operation for \($27\) per unit. Its beginning inventory was determined in Question 9. Assuming that 1,500 units are sold, what is the amount of cost of goods sold using FIFO? LIFO? Weighted average?

Data From Question 9:-

Assume that Key Co. purchased 1,000 units of merchandise in its first year of operations for \($25\) per unit. The company sold 850 units for \($40\). What is the amount of cost of goods sold using FIFO? LIFO? Weighted average?