The July 2003 inventory records of Mario’s Bookstore showed the following: Se HUNKY SSSXCTIMIAITIAYG) MEMO. ne eo ee tac seen: 28,000 at $2.00 = $56,000 Be SOC ene ener ce er ere re ne es en Se 4,000 1S RurchaSed.s.) acucc erent eet ee cn eee 6,000 at$2.25= 13,500 We SOI eet tie Mert cr aint eter ae ee ne ee ee 3,000 25°" Purctiasediot etic ae eter RN IE OBR RI ne 8,000 at $2.50 = 20,000 ZT SOLON canes eho ke eR SE we A eee 5,000 $89,500 1. Using the perpetual inventory method, compute the ending inventory and cost of goods sold balances with

(a) FIFO,

(b) LIFO, and

(c) average cost. Compute unit costs to the nearest cent. 2. Which of the three alternatives is best? Why?