Grape Leaf Ltd. began operations in 2013. The following presentation relates to the inventory valuations of the company at the end of the year using different inventory methods.

Required:
a. If Grape Leaf uses the weighted-average cost formula, what is the value of ending inventory in each of the four years?
b. If Grape Leaf uses the FIFO cost formula, what is the value of ending inventory in each of the four years?
c. What cost formula would you recommend Grape Leaf use if the inventory prices are falling during the four-year period? Explain your answer.

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Date Dec. 31, 2013 Dec. 31. 2014 Dec. 3, 2015 Dec. 31, 2016 Weighted-Average $120.000 235.000 235.000 210.000 FIFO S110,000 225,000 245.000 235.000 NRV $105,000 230,000 235,000 235,000