Prater Luxury Linens Ltd sells bed and bath linens. For the month of February 2011, the company had a beginning inventory of 1 250 linens with a unit cost of £18. On 3 February, an additional 550 sets of linens were purchased for £19 each. On 7 February, 600 sets were sold for €45 per set. On 14 February, Pater purchased another 400 sets at £18 per set and then sold 720 sets on 26 February for £45 per set.

Required:

1. Calculate the cost of goods sold and ending inventory for February under FIFO.

2. Calculate the cost of goods sold and ending inventory for February under the average cost method.