PORTAGE PRETZELS, INC. (PPI) PPI started out 2021 with a carryover pretzel stock inventory from 2020. On January 1, the company had about 60 pounds of pretzel stock at an average cost of $1.15. Pretzel stock was flavored with one of a number of primarily savory flavorings prior to packaging and distribution. The shelf-life of stock pretzels was quite good-about 6 months. Thus, very little stock expired from dating. 2021 was a challenging year from a supply chain standpoint. Not only was procurement unpredictable, but all shipments incurred a $.10 per pound fuel surcharge for transportation. Standard shipping costs were included in the invoice price per pound, but the surcharge was added on top of the invoice price to offset rapidly rising gasoline prices. 2021 pretzel stock unit purchases and sales were as follows: Purchases Pounds Date Pounds Price(a) Sold 15-Jan 40 40 $1.20 10-Feb 38 26-Feb 55 $1.25 11-Mar 40 22-Mar 45 $1.30 5-Apr 40 19-Apr 35 $1.35 10-May 25 21-May 25 $1.40 5-Jun 20 6-Jul 55 $1.45 11-Aug 25 $1.50 13-Sep 40 23-Sep 25 $1.55 15-Oct 30 22-Oct 45 $1.60 10-Nov 40 5-Dec 55 $1.65 22-Dec 50 (a) Price Invoice Price and does not include fuel surcharge Required 1. Prepare the cost of goods sold and ending inventory values under both the FIFO and LIFO cost assumptions for each of the periodic and perpetual inventory systems. 2. Which cost assumption and which system should PPI use to minimize taxes