To prepare solutions to the requirements listed below, use the data provided in P2 but assume that the company uses the perpetual inventory system.

In P2, The inventory, purchases, and sales of Product SOL for March and April are listed below. The company closes its books at the end of each month. It uses the periodic inventory system.

REQUIRED

1. Determine the cost of ending inventory and cost of goods sold for March and April using the average-cost method. Round unit costs to cents and totals to dollars.

2. Determine the cost of ending inventory and cost of goods sold for March and April using the FIFO method.

3. Determine the cost of ending inventory and cost of goods sold for March and April using the LIFO method.

4. Assume that this company grows for many years in a long period of rising prices. How realistic do you think the balance sheet value for inventory would be, and what effect would it have on the inventory turnover ratio?

Apr. 4 Purchase 120 units $53 Purchase50 units S54 Mar. 1 Beginning inventory 60 units$49 10 Purchase 100 units $52 19 Sale 31 Ending 23 Sale 25 Purchase 100 units $55 30 Ending 200 units 90 units inventory 70 units inventory 140 units