The following data regarding purchases and sales of a commodity were taken from the related perpetual inventory account:

May 1 Balance 25 units at $40

6 Sale 20 units

8 Purchase 20 units at $41

16 Sale 10 units

20 Purchase 20 units at $42

23 Sale 25 units

30 Purchase 15 units at $43

(a)Determine the cost of the inventory balance at May 31, using (1) the first-in, first-out method and (2) the last-in, first-out method.Identify the quantity, unit price, and total cost of each lot in the inventory.

(b)Present the journal entry to record a shortage (shrinkage) of $53 discovered by the physical count on May 31.