The following data pertains to software packages in the inventory of the Investment Software division of Efficient Market Investment Outlets:

Inventory, January 1	250	units at $123
Purchases:
May 10	190	units at $121
August 18	260	units at $120
October 1	250	units at $121
Inventory, December 31	258	units

1(a). Determine the cost of the inventory on December 31 and the cost of goods sold for the year ending on that date under the FIFO method.

1(b). Determine the cost of the inventory on December 31 and the cost of goods sold for the year ending on that date under the LIFO method.

1(c). Determine the unit cost, cost of the inventory on December 31 and the cost of goods sold for the year ending on that date under the average cost method.

2. Assume that the net realizable value of each unit on December 31 is $121.25. Using the lower of cost or net realizable value rule, find the inventory amount under each of the methods given in requirement 1.

Analyze: What is the difference between the cost and net realizable value of the inventory using the LIFO method?