Watkins Corporation began operations on January 1, 2010. The 2010 and 2011 schedules of inventory purchases and sales are as follows:

Complete the following schedule, and briefly discuss the trade-offs associated with choosing an inventory cost flow assumption.

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2010: Purchase 1 Purchase 2 10 units @ S10 per unit 20 units @ S12 per unit S100 240 $340 Total purchase costs Sales 15 units @ S30 per unit $450 2011: Purchase 1 Purchase 2 10 units @ S13 per unit 15 units @ S15 per unit S130 225 S355 Total purchase costs 20 units a $35 per unit Sales S700