Reasoner Sailing Company sells boats as a supplement to its boat storage operations. Data for its boat sales for August 2016 are given below. The beginning inventory on August 1 was composed of the following items:

	Cost			Retail
28' Starfish	$	35,000		$	47,000
30' Perch		55,000			75,000
24' Sea King		21,000			25,000
30' Holiday		41,000			50,000
20' Lake King		23,000			29,500

Sales during the month were the 30' Holiday and the 20' Lake King, sold at the retail values shown on August 1.

1.

Based on the above data, what is the best method of valuing the ending inventory?

	LIFO method
	FIFO method
	Specific Identification

2 & 3.

Determine the value of Reasoner Sailing Company's cost of goods sold and ending inventory of items that were brought over from the beginning inventory using this method. Assume that the company's retail values had not changed.