As expected, the holiday season was very busy for Kate and her greeting card company. In fact, most of her supplies were fully depleted by year-end, necessitating a restocking of inventory. Assume that Kate uses the periodic method of accounting for inventory and that her January beginning inventory was \(\$ 0\). The following transactions occurred for Kate's Cards during January of the New Year:

Required

a. Calculate the company's cost of goods sold and value of ending inventory for the month of January using (1) FIFO, (2) LIFO, and (3) the weighted-average cost method. Round the cost per unit to 3 decimal places and round your final answers to the nearest dollar.

b. If the net realizable value of Kate's inventory is \(\$ 4.00\) per unit on January 31 , what value should be reported for her ending inventory on the January 31 balance sheet under each of the three inventory costing methods?

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Purchases Units Unit Cost Total Cost Jan. 10. 400 $3.00 per unit $1,200 Jan. 17. 500 @$3.50 per unit 1,750 Jan. 23 300 $4.00 per unit 1,200 Total. 1,200 $4,150 Sales Jan. 15. 360 Jan. 21 Jan. 27 Total.. 420 380 1,160