Question: 3 On March 31, 2020, Sole way, Inc. sold 800 computers to Xavier Company. Prior to this sale the Sole way records for these units included the following cost layers: Purchase Date Quantity...

Question: 3
On March 31, 2020, Sole way, Inc. sold 800 computers to Xavier Company. Prior to this sale the Sole way records for these units included the following cost layers:

Purchase Date Quantity Unit Cost Total Cost
Mar. 11, 2019
500 20 10,000
Mar. 19, 2019

1200 23 27,600
Total on hand 1700 37,600

Required:
⦁ Complete a subsidiary ledger record for the computer using each of the three inventory valuation methods listed below
⦁ Average cost.
⦁ FIFO.

⦁ LIFO.

Your inventory records should show both purchases of this product, the sale on Mar 31, and the balance on hand on Mar 31, 2020.
⦁ Which of the three cost flow assumptions will result in reporting the lowest net income for the current year? Explain