Suppose that David adopted the last-in, first-out (LIFO) inventory-flow method for his business inventory of widgets (purchase prices below).

Widget	Purchase Date	Direct Cost	Other Costs	Total Cost
#1	August 15	$ 2,100	$ 100	$ 2,200
#2	October 30	2,200	150	2,350
#3	November 10	2,300	100	2,400

In late December, David sold widget #2 and next year David expects to purchase three more widgets at the following estimated prices:

Widget	Purchase Date	Estimated Cost
#4	Early spring	$ 2,600
#5	Summer	2,260
#6	Fall	2,400

a.	What cost of goods sold and ending inventory would David record if he elects to use the LIFO method this year?

b.	If David sells two widgets next year, what will be his cost of goods sold and ending inventory next year under the LIFO method?

c-1.	What cost of goods sold and ending inventory would David record if he elects to use the FIFO method this year?

c-2.	If David sells two widgets next year, what will be his cost of goods sold and ending inventory next year under the FIFO method?

d.	Suppose that David initially adopted the LIFO method, but wants to apply for a change to FIFO next year. What would be his