Paddington Gifts made purchases of a particular product in the current year as follows: Jan. 1 Beginning inventory 170 units @ $ 5.30 = $ 901 Mar. 7 Purchased 430 units @ $ 4.90 = 2,107 July 28 Purchased 1,200 units @ $ 4.30 = 5,160 Oct. 3 Purchased 730 units @ $ 3.70 = 2,701 Totals 2,530 units $ 10,869

Required:

1. The business uses a periodic inventory system. Ending inventory consists of 110 units. Calculate the costs to be assigned to the ending inventory and to goods sold under: (Round intermediate calculations and final answers to 2 decimal places for "Weighted average cost".)

2. Which method provides the lower profit?

Weighted-average cost or FIFO