1. The Delta company uses a periodic inventory system. The beginning balance of inventory and purchases made by the company during the month of July, 2016 are given below:

July 01: Beginning inventory, 500 units @ $20 per unit.

July 18: Inventory purchased, 800 units @ $24 per unit.

July 25: Inventory purchased, 700 units @ $26 per unit.

The Delta company sold 1,400 units during the month of July.

the inventory on July 31, 2016 and cost of goods sold for the month of July using following inventory costing methods:

First in, first out (FIFO) method

Last in, first out (LIFO) method

First in first out FIFO	31,800.00
Last in first out LIFO	35,000.00
FIFO method
Date	Particular	units	Cost	Amount	COGS
Jul 01	Beginning inventory	500.00	20.00	10,000.00
Jul 18	purchase	800.00	24.00	19,200.00
Jul 25	purchase	700.00	26.00	18,200.00
	Total	2,000.00		47,400.00
	COGS	1,400.00		31,800.00	500x20+800x24+100x26
	Ending inventory	600.00		15,600.00	600x26
COGS	31,800.00
Ending inventory	15,600.00
LIFO method
Date	Particular	units	Cost	Amount	COGS
Jul 01	Beginning Inventory	500.00	20.00	10,000.00
Jul 18	Purchase	800.00	24.00	19,200.00
Jul 25	Purchase	700.00	26.00	18,200.00
	Total	2,000.00		47,400.00
	COGS	1,400.00		35,000.00	700x26+700x24
	Ending Inventory	600.00		12,400.00	100x24+500x20
COGS	35,000.00
Ending Inventory	12,400.00

1. What is the impact of valuing the Inventory under each of the methods for the above organization?