The Hat Store had the following series of transactions for 2016:

Required
a. Determine the quantity and dollar amount of inventory at the end of the year, assuming The Hat Store uses the FIFO cost flow assumption and keeps perpetual records.
b. Write a memo explaining why The Hat Store would have difficulty applying the weighted average method on a perpetual basis.

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Date Transaction Description Jan. 1 Mar. 15 May 30 Aug. 10 Nov. 20 Beginning inventory Purchased Sold Purchased Sold 50 units $40 200 units @ $42 170 units $95 275 units @ $46 340 units @ $96