The units of an item available for sale during the year were as follows: Jan.1 Inventory 26 units at $400 per unit Feb. 19 Purchase 54 units at $460 per unit June 8 Purchase 63 units at $540 per unit Oct. 7 Purchase 58 units at $550 per unit There are 47 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost under each of the following methods. a. Determine the inventory cost by the first-in, first-out method. b. Determine the inventory cost by the last-in, first-out method. c. Determine the inventory cost by the average cost method. Do not round intermediate calculation and round final answer to the nearest whole value. Feedback Check My Work a. In the FIFO method, the first units purchased are assumed to be the first to be sold. Therefore, ending inventory costs are calculated by taking the number of items remaining in the physical inventory times the most recent purchase price. b. In the LIFO method, the last units purchased are assumed to be the first to be sold. Therefore, ending inventory costs are calculated by taking the number of items remaining in the physical inventory times the earliest purchase costs.