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Titans, Inc uses a periodic inventory system. One of the store'smost popular products is a nerf-type basketball. The inventoryquantities, purchases, and sales of this product for the mostrecent year are as follows:

	Number of Units	Cost per Unit	Total Cost
Inventory, January	300	$5.20	$1,560
Purchase, March 12	100	$5.60	$560
Purchase, June 19	350	$6.50	$2,275
Purchase, September 3	250	$8.10	$2,025
Units Sold	800

A. What is the cost of the December 31 inventory and the cost ofgoods sold for the basketballs during the year under each of thefollowing cost flow assumptions? Show your work.

1. First in, first-out

2. Last in, first-out

3. Weighted Average cost (round to the nearest dollar, exceptunit cost)

B. Which of the three inventory pricing methods provides themost useful balance sheet valuation of inventory considering thecurrent replacement cost of the basketballs? Explain.

C. Which of the three inventory pricing methods provides themost useful measure of income in light of the costs incurred byTitans to replace the basketballs when they are sold? Considerwhich method results in a net income measure that is mostpredictive of future profitability. In other words, if you werethinking about buying stock in Titans, which inventory pricingmeasure gives you the most useful measure of its futureprofitability? Explain.