. A book inventory system using the cost method, two ways to value inventory are FIFO and LIFO. With given information please show the FIFO and LIFO methods of inventory valuation. Discuss benefits and disadvantages of these cost methods.

Sales: 220 snow blowers at an average of $320 each = $70,400 Merchandise available for sale (at cost)- Beginning inventory= 30 units at $150 each = $4,500 January purchase = 100 units at $175 each=$17,500 Oct.-Dec. purchase =150 units at $225 each =$33,750 Total =280 units =$55,750