Question \#3 (LIFO Reserves) The Company uses FIFO for internal reporting but uses LIFO for external reporting. Information related to inventory during the year follows: Sales during the year were 470 units (a) What is the value of the ending inventory on the LIFO basis? (b) What is the value of the ending inventory on the FIFO basis? (c) Assuming there was a zero balance in the LIFO Reserve account at the beginning of the year, prepare the entry required at December 31 to adjust the balances to report using LIFO. (d) Assuming there was a $400 balance in the LIFO reserve at the beginning of the year, prepare the entry required at December 31 to adjust the balances to report using LIFO