LO8-1 PROBLEM 8.1B Four Methods of Inventory Valuation On January 22, 2021, Dobbins Supply, Inc., sold 700 toner cartridges to Foster Office Fitters. Immediately prior to this sale, Dobbins Supply's perpetual inventory records for these units included the following cost layers. Purchase Date Dec. 12, 2020 Jan. 16, 2021 Total on hand. Instructions Note: We present this problem in the normal sequence of the accounting cyclethat is, journal entries before ledger entries. However, you may find it helpful to work part b first. Prepare a separate journal entry to record the cost of goods sold relating to the January 22 sale of 700 toner cartridges, assuming that Dobbins Supply uses the following. Quantity Unit Cost Total Cost 400 $20 1,200 22 $ 8,000 26,400 1,600 $34,400 a. 1. Specific identification (300 of the units sold had been purchased on December 12, and the remaining 400 had been purchased on January 16). 2. Average cost. 3. FIFO. 4. LIFO. b. Complete a subsidiary ledger record for the toner cartridges using each of the four inventory valuation methods listed. Your inventory records should show both purchases of this product, the sale on January 22, and the balance on hand at December 12, January 16, and January 22. Use the formats for inventory subsidiary records illustrated in Exhibits 8-3 through 8-5 of this chapter. c. Refer to the cost of goods sold figures computed in part a. For financial reporting purposes, can Dobbins Supply, Inc., use the valuation method that resulted in the highest cost of goods sold if, for tax purposes, it used the method that resulted in the lowest cost of goods sold? Explain