PROBLEM 5: Distress Company is a wholesaler of office supplies. The entity uses periodic inventory system. The company reported the following activity for inventory of pens during the month of July: July 1 Inventory 7 Purchase 12 Sale 21 Purchase 22 Sale 29 Purchase Units Cost 20,000 36.00 30,000 37.20 36,000 48,000 38.00 38,000 16,000 38.60 7. What would the valuation of the inventory on July 31 assuming the company uses (1) FIFO method or (2) weighted average method? A. (1) 1,544,000; (2) 1,522,000 B. (1) 1,529,600; (2) 1,522,000 C. (1) 1,529,600; (2) 1,500,800 D. (1) 1,544,000; (2) 1,500,800