II. Inventory Valuation with Changing Prices A company's quarterly inventory costs and selling prices per unit, beginning with the fourth quarter of year 2, are reported below. Both costs and prices rise steadily in the first, second, and third quarters of year 3, then level off in the fourth quarter, and decline in the first quarter of year 4. The company has a constant $200 markup on cost, has three units in inventory at all times, and both buys and sells one unit each quarter. 4 quarter Year 2 Per Unit Selling price Purchase cost 1st quarter 2nd quarter 3rd quarter 4th quarter 1" quarter Year 3 Year 3 Year 3 Year 3 Year 4 1,300 $ 1,400 $ 1,500 $ 1,600 $ 1,600 $ 1,500 1,100 1,200 1,300 1,400 1,400 1,300 $ 1 1 1 Units sold Units purchased 1 1 1 1 4 1 1 1 Ending inventory 3 3 3 3 3 3 Q5) If the retailer uses the first-in, first-out (FIFO) inventory valuation method, then what will be the cost of goods sold, gross profit, and ending inventory for the second, third and fourth quarters of year 3, and the first quarter of year 4? 2nd quarter 3rd quarter 4th quarter Year 3 Year 3 Year 3 1" quarter Year 4 Revenue COGS Gross profit Ending inventory = Inventory value =