Denises Boutique uses the perpetual inventory method for its wristlet purses. following inventory information for October:

It has provided the

Oct. 1 On hand, 40 units @ $20 each $800

Oct 8 Purchased 200 units @$21 each $4,200

Oct. 14. Sold 190 units @ $50 each $9,500

Oct. 19 Purchased 100 units @ $27 each. $2700

Oct. 28 Sold 120 units @ $50 each $6,000

Denises Boutique has a 30% effective income tax rate.

A. How much is the cost of ending inventory at October 31 and the cost of goods sold for October using FIFO?

B.How much is the cost of ending inventory at October 31 and the cost of goods sold for October using LIFO?

C. How much will Denises Boutique save in income taxes if it uses LIFO?

D. Calculate Denises Boutiques inventory-on-hand period under both LIFO and FIFO. Which method generates the better inventory-on-hand ratio?