Laura's Homemade cannot decide which inventory method to use to determine its ending inventory. The accounting records for the current year contain the following information:

Cost Retail

Purchases $67,800 $99,500

Beginning inventory 17,000 23,500

Sales 98,000

Net markups 6,500

Net markdowns 3,000

Compute the ending inventory under the following cost flow assumptions.

1) FIFO

2) lower of cost or market (based on average cost)