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Shawn Company had 240 units in beginning inventory at a total cost of $28,800

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Shawn Company had 240 units in beginning inventory at a total cost of $28,800. The company purchased 480 units at a total cost of $67,200. At the end of the year, Shawn had 180 units in ending inventory.

Compute the cost of the ending inventory and the cost of goods sold under FIFO, LIFO, and average-cost. (Round average-cost per unit and final answers to 0 decimal places.)

a) Which cost flow method would result in the highest net income?

b) Which cost flow method would result in inventories approximating current cost in the balance

sheet?

c) Which cost flow method would result in Shawn paying the least taxes in the first year?