Franzen Company uses a perpetual inventory system. During the month of February of the current year, the company experienced the following transfers and sales on one item in the stock of goods. The sale price of the product is $6. Assume that all sales are on account.

Required:

A. Make the entries for these transactions using FIFO.B. Make the entries for these transactions using LIFO.C. What are the cost of goods sold and the cost of ending inventory under each of these assumptions? Explain why the two methods generate different amounts.

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Date Transaction Feb. 1 Beginning inventory 3 Sale 9 Transfer to Finished Goods 15 Sale 24 Transfer to Finished Goods 28 Sale Number of Units 300 200 600 500 400 300 Unit Cost $4.00 $4.10 $4.20