E7-22 (Algo) (Supplement B) FIFO and LIFO Cost of Goods Sold under Periodic versus Perpetual Inventory Systems Assume that a retailer's beginning inventory and purchases of a popular item during January included (1) 370 units at $7.70 in beginning inventory on January 1, (2) 520 units at $8.70 purchased on January 8, and (3) 820 units at $9.70 purchased on January 29. The company sold 420 units on January 12 and 620 units on January 30. Required: 1. Calculate the cost of goods sold for the month of January under (a) FIFO (periodic calculation), (b) FIFO (perpetual calculation) (0) LIFO (periodic calculation), and () LIFO (perpetual calculation). 2. Which cost flow assumption and calculation approach would you recommend to management in order to save taxes? Calculate the cost of goods sold for the month of January under (a) FIFO (periodic calculation), (b) FIFO (perpetual calculation), (C) LIFO (periodic calculation), and (d) LIFO (perpetual calculation). Cost of Goods Sold a. FIFO (periodic calculation) b. FIFO (perpetual calculation) C. LIFO (periodic calculation) d. LIFO (perpetual calculation) Which cost flow assumption and calculation approach would you recommend to management in order to save taxes? Which cost flow assumption and calculation approach would you recommend to management in order to save taxes