The following data represent the beginning inventory and, in the order of occurrence, the purchases and sales of McKensie Company for an operating period.

	Units	Unit Cost	Total Cost	Units Sold	Units on Hand
Beginning Inventory	20	$29	$ 580		20
Purchase no. 1	20	31	620		40
Sale no. 1				30	10
Purchase no. 2	90	32	2,880		100
Sale no. 2				80	20
Purchase no. 3	70	36	2,520		90
Totals	200		$6,600

Assuming McKensieCompany uses LIFO periodic inventory procedures, the ending inventory cost is:

Select one:

A. $2,610

B. $3,160

C. $3,130

D. $2,800

E. None of the above

The lower-of-cost-or-market method for inventory:

Select one:

A. States that inventory must be reported on the balance sheet at its current replacement cost

B. Must be applied to inventory on an item by item basis

C. Places losses from price declines in the period the goods are sold rather than in the period of the price decline

D. May cause inventory to be written up to an amount larger than historic cost

E. None of the above