NC Company, a retail hardware store, began business in August and elected a calendar year for tax purposes. From August through December, NC paid $319,000 for inventory to stock the store. According to a physical inventory count on December 31, NC had $64,600 of inventory on hand. Compute NC’s cost of goods sold for its first year assuming:
a. NC adopted the cash method as its overall method of accounting.
b. NC adopted the accrual method as its overall method of accounting.