Information on a Companys inventory balances, purchases and sales during 2020 is as follows:

Inventory Purchases

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Quantity in Units Cost per Unit Total Cost

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Balance at December 31, 2019 1,000 $4.00 $ 4,000

January 1, 2020 Purchase 2,000 4.00 8,000

June 29, 2020 Purchase 3,000 5.00 15,000

Balance at June 30, 2020 3,000

August 31, 2020 Purchase 2,000 6.00 12,000

December 30, 2020 Purchase 3,000 8.00 24,000

Balance at December 31, 2020 5,000

Inventory Sales

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Quantity Price per Unit Total Sales

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Sales on June 30, 2020 3,000 $10.00 $30,000

Sales on December 31, 2020 3,000 $15.00 $45,000

All purchases and sales are made on the single day specified. Assume that the Companys only expenses are the cost of the units sold and income taxes. Also, assume an income tax rate of 20%.

1. At June 30, 2020

a. What is the cost of the remaining units of inventory (3,000 units) at June 30, 2020 using:

(1) FIFO

(2) LIFO

b. What is the cost of goods sold (3,000 units) for the six months from January 1 to June 30, 2020 using:

(1) FIFO

(2) LIFO

2. At December 31, 2020

a. What is the cost of the remaining units of inventory (5,000 units) at December 31, 2020 using:

(1) FIFO

(2) LIFO

b. What is the cost of goods sold (3,000 units) for the six months from July 1 to De-cember 31, 2018 using:

(1) FIFO

(2) LIFO

3. What is the LIFO Reserve at:

a. June 30, 2020

b. December 31, 2020

4. What inventory valuation method would you recommend for the Company? Why? Please show any calculations to support your answer.

5. Cooper Tires inventory using LIFO on December 31, 2007, 2008 and 2009, respective-ly, is as follows, assume a 20% tax rate:

Year	Method	Inventory on Balance Sheet	LIFO Reserve	Inventory with LIFO Reserve
2007	LIFO	304.6	139.8	444.4
2008	LIFO	420.1	221.9	642.0
2009	LIFO	298.4	127.1	425.5

a. Did Cooper Tire save on taxes in 2008 by being on LIFO? Why or why not? Please show any calculations to support your answer.

b. Did Cooper Tire save on taxes in 2009 by being on LIFO? Why or why not? Please show any calculations to support your answer.

c. On December 31, 2009, is using LIFO still beneficial to Cooper Tire? Why or why not? Please show any calculations to support your answer.