ABC, Inc. is dedicated to the buying and selling of ziggyzaps, a type of innovative item used in the home. Due to the high cost of ziggyzaps, the company keeps inventory low. At the beginning of December the company had no inventory or debts. Below are the transactions that took place during the company's first month of operations. They were carried out in CASH.

On the 9th, a ziggyzap is acquired at a cost of $275,000.

On the 12th he bought another ziggyzap for $300,000.

On the 27th he bought another ziggyzap for $360,000

On the 28th of the month, two ziggyzaps were sold in cash for $420,000 each.

Other expenses incurred by the business and paid during the first month totaled $50,000.

The income before taxes on the Income Statement is equal to the taxable income on the return. The tax rate is 35%.

a. Calculate the company's net income for the first month of operations under the assumption that it uses FIFO to account for its inventory.

b. What would be the Cost of Goods Sold (COGS) in the Income and Expense Statement under average?

c. What would be the Inventory balance that would be reported in the Statement of Financial Position as of the 31st of the month under FIFO?