Answer:
                        Transactions        Units        Unit Cost   Total Cost
a. Inventory, Beginning               4,000             $ 20      80,000
b. Purchase, March 5                  10,000              21        210,000
c. Purchase, September 19          6,000             23        138,000
d. Sale, April 15                             4,500            65         292500
e. Sale, October 31                        9,000            68        612000
 f. Operating expenses  $615,000 
Ending Inventory Units 6,500
Cost of Good Available for Sale = 80,000+ 210,000+ 138,000= $428,000
The number of units in ending inventory = Beginning + Purchases - Sales
                                                      =4000+ 10,000+ 6000- 4,500- 9,000
                                                      = 6500
FIFO  cost of ending inventory $ 148500
6,000 units at $ 23 =$138,000
500 units at $ 21= $ 10500
FIFO  cost of goods sold = Sales - FIFO Ending Inventory
                                       = $ 904500- $ 148500= $ 756000
LIFO  cost of ending inventory $ 132500
4,000 units at $ 20 =$80,000
2500 units at $ 21= $ 52500
LIFO  cost of goods sold = Sales - LIFO Ending Inventory
                                       = $ 904500- $ 132500= $ 772000
Weighted  cost of ending inventory = ($428,000/20,000)*6500= $ 139100
Weighted cost of goods sold = Sales - Weighted  Ending Inventory
                                               =$ 904500-$ 139100= $765400
Scoresby Inc. tracks
Income Statement
                                        FIFO                  LIFO            Weighted Method
Sales                      $ 904500            $ 904500         $ 904500
Cost OF Good       $756000            $ 772000            $765400
Sold
Gross Profit           $ 148500             $ 132500             $ 139100
Less
<u>Operating expenses  $615,000         $615,000              $615,000 </u>
Net Loss                   (466,500)            (482,500)            (475,900)
4.LIFO minimizes taxes as it gives the lowest gross profit assigning the oldest values to ending inventory.