Harrison. Charles & Company Inc. sells flower planters for $7 each. On its first day of business in January, the company purchased 2,000 planters for $3 each. The company sold 300 units during the first month of operations and sold an additional 1,300 units the next month. To prevent inventory stockouts during summertime, the company bought an additional 700 units for $4.50 each in May. The company sold 850 units from May through December. The company uses a perpetual inventory system and the FIFO inventory costing method.
Required
a. Compute Harrison, Charles & Company's ending inventory balance at the end of the year and its cost of goods sold balance for the year.
b. Would those balances be different if the company had used the FIFO costing method under a periodic inventory system?