Maggies 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)