Firm A operates a periodic inventory system. On 1 January 2020, the inventory account had a balance of 700,000. At the end of 2020, the firm conducted a physical count of its inventory and found that the inventory value was 600,000. We also know the following information.

1. On December 25th, 2020, firm A purchased 300,000 inventories. On the terms of the FOB shipping point, the seller shipped out the inventory on December 27th, 2020. Firm A received the inventory on January 5th, 2021. Firm A already recorded the purchasing transaction.

2. On December 28th, 2020, firm A made a sale transaction of 200,000. The cost of the goods sold is 150,000. The customer paid in cash. Firm A shipped out the inventory to the customer on December 30th, 2020, on the term of FOB destination. The customer received the goods on January 2nd, 2021. Firm A hasnt made any journal entries related to this sale transaction.

3. There are 50,000 inventories on consignment from Firm B.

Required:

1. What is the ending inventory balance at the end of 2020? Show your calculation process?

2. Suppose that the purchase account has a balance of 600,000 at the end of 2020. What should be the cost of goods sold for 2020? Show your calculation process