Please answer full question . ### Understanding LIFO (Last In, First Out) Inventory Accounting MethodThe Last In, First Out (LIFO) method is an inventory valuation method that assumes the most recently acquired items are the first to be used or sold. Here is a breakdown of an example of a LIFO calculation for both the Cost of Goods Sold (COGS) and Ending Inventory.#### Cost of Goods Sold (COGS) Calculation:This section is used to compute the cost associated with goods that were sold during a specific period under the LIFO method.| **LIFO** | **Units** | **Unit Cost** | **Cost of Goods Sold** ||----------|-----------|---------------|------------------------|| | | @ | = $0 || | | @ | = $0 || **Total**| **0** | | **$0** |**Explanation:**- **Units:** The quantity of items sold.- **Unit Cost:** The cost of each unit sold.- **Cost of Goods Sold:** The total cost of the units sold, calculated by multiplying the units sold by the unit cost.#### Ending Inventory Calculation:This part calculates the value of the inventory that remains unsold at the end of the period using the LIFO method.| **LIFO** | **Units** | **Unit Cost** | **Ending Inventory** ||----------|-----------|---------------|------------------------|| | | @ | = $0 || | | @ | = $0 || **Total Ending Inventory**| **0** | | **$0** |**Explanation:**- **Units:** The quantity of items remaining in the inventory.- **Unit Cost:** The cost attributed to each unit remaining.- **Ending Inventory:** The total value of the remaining inventory, calculated by multiplying the remaining units by their respective unit costs.### Summary:These tables allow companies to calculate and analyze their inventory costs using the LIFO method. The ending inventory valuation is crucial for financial reporting and determining the cost of goods sold, which impacts the company’s profitability. **Title: Cost Allocation for Cortez Company Using FIFO Method**Cortez Company sells chairs that are used at computer stations. Its beginning inventory of chairs was 90 units at $95 per unit. During the year, Cortez made two batch purchases of this chair. The first was a 214-unit purchase at $108 per unit; the second was a 252-unit purchase at $114 per unit. During the period, it sold 354 chairs.**Required:**Determine the amount of product costs that would be allocated to cost of goods sold and ending inventory, assuming that Cortez uses FIFO (First In, First Out).### Cost of Goods Sold Calculation Using FIFO Method#### Table: FIFO Cost of Goods Sold Calculation| FIFO | Units | Unit Cost | Cost of Goods Sold ||------|-------|-----------|---------------------|| | | @ | $ ||------|-------|-----------|---------------------|| | | @ | $ ||------|-------|-----------|---------------------|| | | @ | $ ||------|-------|-----------|---------------------|| Total | 0 | | $ |### Calculation of Units and Costs for Ending Inventory Using FIFO#### Table: FIFO Ending Inventory Calculation| FIFO | Units | Unit Cost | Ending Inventory ||----------|-------|-----------|--------------------|| | | @ | $ ||----------|-------|-----------|--------------------|This method involves using the cost of the oldest inventory items first to calculate the cost of goods sold.### Steps for Calculation:1. **First, calculate the cost of the units sold employing the FIFO method:** - Begin with the oldest inventory first. - Account for the units and their respective costs from the beginning inventory and subsequent purchases until the total number of units sold is reached. 2. **Next, determine the ending inventory:** - Subtract the number of units sold from the total units available for sale. - Allocate costs to the remaining units in inventory, starting with the most recent purchases.The detailed computation for the cost of goods sold based on the FIFO method and the ending inventory should be completed by inputting the respective costs and quantities into the provided tables.

Under the FIFO method, the inventory which is purchased first is also sold first. Whereas under the…

Cortez Company sells chairs that are used at computer stations. Its beginning inventory of chairs was 90 units at $95 per unit. During the year, Cortez made two batch purchases of this chair. The first was a 214-unit purchase at $108 per unit; the second was a 252-unit purchase at $114 per unit. During the period, it sold 354 chairs. Required Determine the amount of product costs that would be allocated to cost of goods sold and ending inventory, assuming that Cortez uses a. FIFO: Cost of Goods Sold FIFO Units Unit Cost @ %3D Total Ending Inventory FIFO Units Unit Cost %24