Azure Games Inc. is a New Jersey online gadget retailer.The company uses the LIFO periodic inventory valuation method and applies the lower of cost or market rule whenever necessary to value inventories. The company placed an order for 100 newer gadgets in October 2020 from a Vietnamese gadget-maker for $1.30 a unit, including shipping costsf.o.b. shipping point. The order has already shipped, but it is not expected to be delivered until January 10, 2021. The order for the 100 new gadgets has not been paid or recorded.

Azure Games has 22 gadgets on hand in its warehouse on December 31, 2020 (see the inventory records table below). The company has announced it will hold a 50%-off sale in January 2021 to dispose of the gadgets in ending inventory to make room for the newer gadgets. These gadgets usually sell for $1.80 each, but the sales price would be reduced by 50% to $0.90 during thesale.Under the company's LIFO Periodic inventory valuation assumption, the gadgetsin ending inventory slated for the 50%-off sale in January 2021 are assumed to come from the earliest purchases.The company's inventory records for the year are provided in the following table:

Units Cost per unit Total Cost Begin. Inventory 1/1/2020 ..i.. 20 $ 0.80 $ 16.00 Purchases 3/25/2020 88 1.00 88.00 Purchases 8/19/2020 420 1.28 537.60 Goods Available for Sale 528 $ 641.60 Units Sold 506