Nash Auto Parts, Inc., had the following transactions for 2016:

Required
a. Determine the quantity and dollar amount of inventory at the end of the year, assuming Nash Auto Parts, Inc., uses the FIFO cost flow assumption and keeps perpetual records.
b. Write a memo explaining why Nash Auto Parts, Inc., would have difficulty applying the LIFO method on a perpetual basis. Include a discussion of how to overcome these difficulties.

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Date Transaction Description Jan. 1 Mar. 15 Purchased May 30 Sold Aug. 10 Purchased Nov. 20 Beginning inventory 40 units $22 150 units@$24 175 units $48 320 units $26 300 units @ $50 Sold