Arthur has a bird shop that sells canaries. Arthur maintains accurate records on the number of birds purchased from its suppliers and the number sold to customers. The records show the following purchases and sales during

Date Transactions Units Unit Cost Total Cost

January Beginning inventory $ $

April Purchase

August Purchase

October Purchase

$

January to December Sales $ each

Arthur uses a periodic inventory system and believes there are birds remaining in ending inventory. However, Arthur neglects to make a final inventory count at the end of the year. An employee accidentally left one of the cages open one night and birds flew away, leaving only birds in ending inventory. Arthur is not aware of the lost canaries.

Required:

What amount will Arthur calculate for ending inventory and cost of goods sold using FIFO, assuming he erroneously believes canaries remain in ending inventory?