2 Pool Corporation, Inc., reported in its recent annual report that in 2010, our industry experienced some price deflation.... In 2011, our industry experienced more normalized price inflation of approximately 3.9% overall despite price deflation for certain chemical products." This suggests that in some years Pool's overall inventory costs rise, and in some years they fall. Furthermore, in many years, the costs of some inventory items rise while others fall. Assume that Pool has only two product items in its inventory this year Purchase and sales data are presented below Inventory Item Inventory Item Transaction Unit Cost Units Unit cost Deginning inventory 230 5 7.90 230 $7.90 Purchases, February 7 Purchases, March 16 290 10.90 290 4.90 Salos, April 20 540 Units BOON 270 9.90 270 6.90 Prot 540 lorences Required: 1. Compute cost of goods sold for each of the two items separately using the FIFO and LIFO inventory costing methods 2. Between FIFO and LIFO, which method is preferable in terms of (a)net Income and (b) income taxes paid (cash flow? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute cost of goods sold for each of the two items separately using the FIFO and LIFO Inventory costing methods LIFO Item A Hem B FIFO Regis Required 2 > Pool Corporation, Inc., reported in its recent annual report that in 2010, our Industry experienced some price deffation.... In 2011, our Industry experienced more normalized price inflation of approximately 3.9% overall despite price deflation for certain chemical products. This suggests that in some years Pool's overall inventory costs rise, and in some years they fall. Furthermore, in many years, the costs of some Inventory items rise while others fall. Assume that Pool has only two product items in its inventory this year, Purchase and sales data are presented below. look Transaction Beginning inventory Purchases, February 7 Purchases, March 16 Sales, April 28 Inventory Iten A Unito Unit cost 230 $ 7.90 220 9.90 290 10.90 540 Inventory Item 1 Units Unit Cost 230 $7.90 270 6.90 290 4.90 540 Priet erences Required: 1. Compute cost of goods sold for each of the two items separately using the FIFO and LIFO inventory costing methods 2. Between FIFO and LIFO, which method is preferable in terms of (a) net income and (b) income taxes pald (cash flow)? Complete this question by entering your answers in the tabs below. Required: Required 2 Between Fifo and LIFO, which method is preferable in terms of () net income and (b) income taxes pald (cash Mow)? Hem A Itam B () Net income (6) Income taxes paid