CHALLENGE 3 The company RESOLVE, Plc. uses a FIFO method to manage inventories. In 2020, inventories showed the following movements: Price (P) 15 20 Item BI Purchase # 1 Sale # 1 Purchase #2 Purchase #3 Sale # 2 Sale #3 EI Units (U) 200,000 200,000 -250,000 300,000 100,000 -250,000 -250,000 ? 25 15 ? ? ? Please, answer the following questions: 1. What is the number of units at the end of the year? What is the value of those units according to FIFO? 2. Had the company applied a weighted average cost method, what would have been the value of the inventories at the end of the year? What would be the entry to record the change in inventories of merchandise? Solve the exercise on inventory by using FIFO and Weighted Average Cost