Lynbrook, Inc. has recently decided to diversity its business by selling cases of paper to supplement their delivery services business. As the Controller of Lynbrook, Inc. you need to determine the inventory costing method that will be used to record inventory transactions. Lynbrook began 2019 with 6,000 cases of paper. The cost of each case is $8. Merchandise transactions for the month of January 2019 are as follows:

Date of purchase. Cases. Cost/case. Total case

Jan 10. 10000. 9. 45000

Jan.18 6000. 10. 60000

Totals. 11000. 105000

Date of Sale. Cases

Jan 5 3000

Jan 12 2000

Jan 20 4000

Total 9000

8000 units were on hand at the en of the month

Required: 1. Calculate January's ending inventory and cost of goods sold for the month using each of the following alternatives (prepare your solution based on the format used in the Review Problem located on pages 330-332): A. FIFO, perpetual system B. LIFO, perpetual system C. Average cost, perpetual system (round to two decimals, if needed) 2. After your analysis, you recommended that Lynbrook use the LIFO inventory costing method. Prepare the journal entries to record the purchases and sales of inventory during January 2019.