Suppose that David adopted the last-in, first-out (LIFO) inventory-flow method for his business inventory of widgets (purchase prices below).

	Purchase	Direct		Other		Total
Widget	Date	Cost		Costs		Cost
#1	August 15	$	2,100	$	100	$	2,200
#2	October 30		2,200		150		2,350
#3	November 10		2,300		100		2,400

In late December, David sold widget #2 and next year David expects to purchase three more widgets at the following estimated prices:

	Purchase	Estimated
Widget	Date	Cost
#4	Early spring	$	2,600
#5	Summer		2,260
#6	Fall		2,400
a. What cost of goods sold and ending inventory would David record if he elects to use the LIFO method this year? b. If David sells two widgets next year, what will be his cost of goods sold and ending inventory next year under the LIFO method? c-1. What cost of goods sold and ending inventory would David record if he elects to use the FIFO method this year? d. Suppose that David initially adopted the LIFO method, but wants to apply for a change to FIFO next year. What would be his 481 adjustment for this change, and in how many year(s) would he make the adjustment?