Question 1 (Inventory Valuation / 20 marks) XYZ Company sells computers, and the company purchased nine computers from Dell Computer at the following dates and costs: Units Purchased Date Oct 1 Nov 1 Dec 1 Total Unit Cost $3,000 $3,200 $3,250 Total Cost $6,000 $9,600 $13,000 $28,600 On November 21, XYZ sold four of these computers and the other five computers remained in the company's inventory at December 31. Assume the XYZ uses a perpertual inventory system. Compute the Cost of Goods Sold (COGS) and the ending inventory value in the following two methods: a) Average Cost b) FIFO (12 marks) Show the number of units and the unit costs layers comprising the COGS and the ending inventory. c) Discuss the possible reason behind adopting the FIFO method. (8 marks)