FIFO and LIFO Costs Under Perpetual Inventory System

The following units of an item were available for sale during the year:

Beginning inventory	21,000 units @ $45
Sale	6,040 units @ $70
First purchase	34,000 units @ $48
Sale	29,324 units @ $71
Second purchase	30,000 units @ $49
Sale	23,314 units @ $73

The firm uses the perpetual inventory system, and there are 26,322 units of the item on hand at the end of the year.

a. What is the total cost of the ending inventory according to FIFO?

b. What is the total cost of the ending inventory according to LIFO?