Fix-IT Inc. is a company specializing in the sale of refurbished smartphones. It purchases old and broken smartphones, repairs them, and resells the fixed smartphones. The company's fiscal year ends on December 31. Assume the beginning balance of its inventory for FY 2021 was zero.

Inventory purchase schedule for FY 2021:

Date	Unit Cost	Quantity
January 16, 2021	$50	200
June 1, 2021	$40	180
August 31, 2021	$45	30
September 22, 2021	$35	120
December 3, 2021	$35	60

Sales transactions for FY 2021:

Date	Unit Price	Quantity
May 9, 2021	$70	150
November 21, 2021	$80	300
December 25, 2021	$75	70

Tasks:

LIFO Inventory System: Assuming that Fix-IT Inc. adopts the LIFO (Last-In, First-Out) inventory system, calculate the cost of goods sold (COGS) for FY 2021.

FIFO Inventory System: Assuming that Fix-IT Inc. adopts the FIFO (First-In, First-Out) inventory system, calculate the COGS for FY 2021.

Taxable Income Comparison: Assuming all other factors remain constant, compare the taxable income for FY 2021 under both LIFO and FIFO methods. Determine which inventory valuation method would result in a lower tax expense for Fix-IT Inc.

LIFO / FIFO