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Question: problem 3 25 points er inc sells portable generators and...

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Problem 3 (25 points) er Inc. sells portable generators and uses a perpetual inventory system. Shown below are Castners purchases during June: Total cost $7,420 $10,900 $10,260 $28,580 Purchase Date Unit purchased Unit cost : June 2 June 7 June 25 Total 7 10 9 26 $1,060 $1.090 $1,140 On June 20, Castner Inc. sold 12 units. The other 14 units remained in inventory at June 30 1. Compute the cost of goods sold relating to the sale on June 20 and the ending inventory June 30 using the following cost flow assumptions. (15 points) (Show your solutions, including the number of units and costs per unit) Cost of Ending Goods Sold Inventory a Average cost b FIFO (First-in, first-out C LIFO (Last-in, first-out) 2. Using the cost figures computed above, answer the following questions: income for the current year? Would this always be the case? Explain. (5 points) year? Would you expect this usually to be the case? Explain. (5 points) a. Which of the three cost flow assumptions will result in the company reporting the lowest net b. Which of the three cost flow assumptions will result in the highest income tax expense for the
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