Trends by Tiffany sells high-end leather purses. During 2012, the company has the following inventory transactions.

Because trends in purses change frequently, Trends by Tiffany estimates that the remaining four purses have a current replacement cost at December 31 of only $250 each.
Required:
1. Using FIFO, calculate ending inventory and cost of goods sold.
2. Using LIFO, calculate ending inventory and cost of goods sold.
3. Determine the amount of ending inventory to report using lower-of-cost-or-market.
Record any necessary adjustment under (a) FIFO and (b) LIFO.

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Units 10 20 16 46 Date Transaction Total Cost Jan. 1 Apr. 9 Oct. 4 Beginning inventory Purchase Purchase Cost $400 420 450 $ 4,000 8,400 7,200 $19,600 Jan. 1-Dec. 31 Sales 42