a.) Given the following information about purchases and sales during the year, compute the cost to be assigned to ending inventory under each of three methods: (a) average-cost, (b) FIFO, and (c) LIFO. (Show your work.)

Assume that a periodic inventory system is used.

Jan.	1		Beginning inventory	225 items @ $3 =	$ 675
May	1		Purchases	675 items @ $6 =	4,050
			Totals	900 items	$4,725
			Total sales	450 items
Dec.	31		Ending inventory	450 items

b.) Assuming a perpetual inventory system is used, use the following information to calculate cost of goods sold on an average-cost basis.

Dec.	1		Beginning inventory	50 units @ $22
	9		Purchases	50 units @ $24
	17		Sales	25 units
	22		Purchases	75 units @ $27
	27		Sales	40 units