EFFECTS OF PRICE AND QUANTITY ON INVENTORY COSTING DATA Quicksilver, Inc., is considering its choice of inventory costing for one of the items in its merchandise inventory. Quicksilver’s accountant has prepared the following data for that item:

FIFO LIFO Average Cost Beginning inventory $ 50,400 $ 50,400 $ 50,400 Purchases 460,300 460,300 460,300 Cost of goods available for sale $510,700 $510,700 $510,700 Ending inventory (72,600) (54,200) (60,900)

Cost of goods sold $438,100 $456,500 $449,800 Required:

. What does this data imply about the number of items in beginning and ending inventory?

. Can you infer from this data whether the prices at which Quicksilver purchased the items increased or decreased? Explain your answer.

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