J & G sells a variety of School supplies from a store located at Red Mountain Mall. The business began the second quarter (April to June) of 2009 with 2,000 pencil cases at a total cost of $200,000. The following transactions took place during the quarter. April 10 April 30 May 1 Purchased 3,000 pencil cases on account at a cost of $110 each. An additional air freight charge of $2, as well as customs import charge of $3 per case was incurred and paid. It is customary for J & G to include freight int as part of the cost of the units in their inventory record During the month 1.000 pencil cases were sold at a price of $160 each A new batch of 3,200 cases was purchased on account at a cost of $352.000 15 of the pencil cases purchased on April 10 were found to be defective and returned to the supplier The sales for May were 2.350 pencil cases at a unit selling price of $120. 10 of the pencil cases sold at the start of business on May 28 were returned by the customer May 15 May 28 May 31 Using the FIFO method, the value of ending inventory after accounting for the transaction on May 1, 2009 is: a $782.000 15. 797.000