Nash Auto Parts, Inc. had the following transactions for Year 2:

Required
a. Determine the quantity and dollar amount of inventory at the end of the year, assuming Nash Auto Parts, Inc. uses the FIFO cost flow assumption and keeps perpetual records.
b. Write a memo explaining why Nash Auto Parts, Inc. would have difficulty applying the LIFO method on a perpetual basis. Include a discussion of how to overcome these difficulties.

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Transaction Date Description Beginning inventory Purchased Sold Purchased 40 units @ 150 units @ $24 175 units @ $48 320 units @ $26 300 units @ $50 Jan. 1 Mar. 15 May 30 Aug. 10 Sold Nov. 20