During 2018, Noval Company sells 270 units of inventory for $100 each. The company has the following inventory purchase transactions for 2018.

Required:
1. Calculate ending inventory, cost of goods sold, and gross profit for 2018, assuming the company uses LIFO with a periodic inventory system.
2. To comply with IFRS, the company decides to instead account for inventory using FIFO. Calculate ending inventory, cost of goods sold, and gross profit for 2018.
3. Explain the effects in the company’s income statement and balance sheet of using FIFO instead of LIFO to account for inventory.

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Date Jan. 1 Apr. 7 Oct. 9 Transaction Beginning inventory Purchase Purchase Number of Units 70 190 90 350 Unit Cost $83 85 87 Total Cost $5,810 16,150 7,830 $29,790