Nunez Company, a retail hardware store, began business in August and elected a calendar year for tax purposes. From August through December, Nunez paid $319,000 for inventory to stock the store. According to a physical inventory count on December 31, Nunez had $64,600 of inventory on hand. Compute Nunez’s cost of goods sold for its first year assuming

a. Nunez adopted the cash method as its overall method of accounting.

b. Nunez adopted the accrual method as its overall method of accounting.