Question: 1. What is the difference between FIFO and LIFO method of calculating ending inventory? (2.5 marks) 2. DEF Booksellers has the following inventory of a

1. What is the difference between FIFO and LIFO method of calculating ending inventory? (2.5 marks)

2. DEF Booksellers has the following inventory of a popular book: January 1st, 2023: 50 units at $20 each January 5th, 2023: 70 units at $22 each January 15th, 2023: 30 units at $25 each On January 20th, 2023, they sell 100 units.

Calculate the cost of goods sold (COGS) and the ending inventory using the LIFO method as of January 20th, 2023.

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