Quicksilver, Inc., is considering its choice of inventory costing for one of the items in its merchandise inventory. Quicksilver€™s accountant has prepared the following data for that item:

Required:
1. What does this data imply about the number of items in beginning and ending inventory?
2. Can you infer from this data whether the prices at which Quicksilver purchased the items increased or decreased? Explain youranswer.

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FIFO LIFO Average Cost $50,400 460,300 Beginning inventory Purchases Cost of goods available for sale Ending inventory Cost of goods sold $50,400 50 40o 460,300 $510,700 2,600 (54,200 $456,500 460,300 $510,700 (60,900) $449,800 $438,100