Trends by Tiffany sells high-end leather purses. The company has the following inventory transactions for the year.

Required:1. Using FIFO, calculate ending inventory and cost of goods sold.2. Using LIFO, calculate ending inventory and cost of goods sold.3. Because trends in purses change frequently, Trends by Tiffany estimates that the remainingnine purses have a net realizable value at December 31 of only $350 each. Determine theamount of ending inventory to report using lower of cost and net realizable value under FIFO. Record any necessary adjustment.

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Transactions Beginning inventory Purchase Purchase Total Cost Date Units Unit Cost Jan. 1 $500 $10,000 20 Apr. 9 Oct. 4 30 11 61 52 520 15,600 550 6,050 $31,650 Jan. 1-Dec. 31 Sales