(Solved by Humans)-Problem 5-13 Inventory Costing Methods—Periodic System Following is an inventory acquisition...

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Problem 5-13  Inventory Costing Methods—Periodic System Following is an inventory acquisition schedule for Weaver Corp. for 2014:     Units Unit Cost Beginning inventory 5,000 $10 Purchase:     February 4 3,000 9 April 12 4,000 8 September 10 2,000 7 December 5 1,000 6 During the year, Weaver sold 12,500 units at $12 each. All expenses except cost of goods sold and taxes amounted to $20,000. The tax rate is 30%. Required 1.        Compute cost of goods sold and ending inventory under each of the following three meth- ods assuming a periodic inventory system: (a) weighted average, (b) FIFO, and (c) LIFO. 2.        Prepare income statements under each of the three methods. 3.        Which method do you recommend so that Weaver pays the least amount of taxes during 2014? Explain your answer. 4.        Weaver anticipates that unit costs for inventory will increase throughout 2015. Will Weaver be able to switch from the method you recommended that it use in 2014 to another method to take advantage of the increase in prices for tax purposes? Explain your answer.   LO1•7• 9